That's meant changing the language of how BlackRock talks about sustainability. In turn, $9.4 trillion BlackRock has turned down the dial on talk of ESG. "For the first time in my professional career, attacks are now personal," Fink said. He said in an interview with Bloomberg in January - a month after an activist investor went after BlackRock and Fink over ESG policy concerns - that attacks on himself and the firm had gotten ugly. ![]() Ultimately, BlackRock needs to prioritize the interests of its shareholders, not some utopian view of the future that many don't share."įink said during the firm's investor day last month that he's "not planning to leave BlackRock anytime soon." And he has at least one major agenda item he may want to see through that could add another footnote to his legacy: executing a "transformational deal," as he and executives told analysts and investors they were open to this spring.įink has acknowledged his firm is increasingly in the public eye. "And Larry's successor won't be able to get this genie back in the bottle. There is no way Larry could promote stakeholder capitalism without alienating many current and prospective clients who reject its premise," said Terrence Keeley, a former longtime BlackRock executive who remains friends with Fink. The question is how Fink's eventual replacement will handle the backlash that's centered on BlackRock. The criticism over BlackRock's ESG embrace, personified by Fink, has introduced a sticky layer of complexity to what a new generation of top BlackRock leadership will contend with. BlackRock did not make Fink available for an interview. "BlackRock has posted industry-leading organic growth over the last year while most of our competitors are experiencing persistent outflows," a company spokesperson told Insider. BlackRock drew $190 billion in flows in the first half of this year, its key Aladdin business had a record year in 2022, and divestments by GOP-led states have been limited. Those concerns persist even though the firm under Fink is performing well. "The problem, rightly or wrongly, is with Larry," a former senior executive who worked with Fink said. ![]() Longtime executives have transitioned to roles dedicated to handling client outreach, aiming to curb the criticism from investors like Texas state officials. ![]() Some employees have raised concerns internally about how Fink's open letters and ESG strategy are impacting the firm's reputation with investors, people familiar with the matter said. The party has now fostered anti-BlackRock and anti-sustainable investing, or "woke," sentiment so mainstream that at least two US presidential candidates have made it part of their platforms.Įmployees and the board alike have taken notice of the growing scrutiny on BlackRock. Casting a shadow over his legacy and eventual departure - for which he hasn't publicly set a timeline - is the anti-environmental, social, and governance investing backlash that has made Fink and BlackRock a favorite political target for Republicans. It's been a strange time for the company and Fink personally.įink turns 71 this year, and BlackRock's board has been busy sizing up possible replacements for him. Larry Fink is entering the twilight of a long, successful career after spending half of his life running BlackRock, the world's largest asset manager he cofounded in 1988. Account icon An icon in the shape of a person's head and shoulders.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |