Business Maverick: BlackRock’s Larry Fink Says a New Era of ‘Shareholder Democracy’ Is Coming

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BlackRock Inc. Chief Executive Officer Larry Fink said a new era of “shareholder democracy” is coming, with investors small and large beginning to take charge of their voting power over companies’ governance and societal stances.

In a letter to BlackRock clients and corporate CEOs, Fink said technology is ushering in the ability for asset-managers’ clients to express their views on issues at company meetings and has the potential to fundamentally transform corporate governance.

BlackRock and other large asset managers such as Vanguard Group and State Street Corp. are facing heightened scrutiny from investors and lawmakers about their outsize sway over companies and their support for investing with environmental, social and governance, or ESG, goals. The three biggest index-fund managers are top-five investors in nearly every S&P 500 company, giving them significant power at shareholder meetings.

The company, with $7.96 trillion in client assets at the end of the third quarter, said it’s expanding the voting program to include seven more options offered by outside proxy adviser Glass Lewis. BlackRock also said it’s working to extend voting power to clients in certain mutual funds in the UK as well as investors in some of its systematic active equity strategies.

 

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Guess they realised the top 1% & institutional clients who can hold majority vote are not that many or that it’s all the same people anyway

Yah true. If you could do it before corporations eat themselves up destroy the planet that would make the second coming redundant.

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