Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Capital on the Frontier Best Practices Geographies
Slack Conference Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe
Features
Series
Themes
Community
Data
Subscribe Log In
More

Larry Fink tells companies to invest in their workers for the long-term — or else



The chief executive of Blackrock last year called on executives to look past their quarterly earnings toward long-term value creation. In this year’s letter to business executives, he told them how: invest in their employees’ skills and financial well-being in a changing world.

In case anybody’s in doubt, that means dialing back buybacks that boost short-term share prices. In the 12 months ending September 30, he said, S&P 500 companies returned to shareholders more in dividends and buybacks than they earned in operating profit.

Some excerpts:

In order to fully reap the benefits of a changing economy — and sustain growth over the long-term — businesses will need to increase the earnings potential of the workers who drive returns, helping the employee who once operated a machine learn to program it.

The events of the past year have only reinforced how critical the well-being of a company’s employees is to its long-term success.

Companies must lend their voice to developing a more secure retirement system for all workers, including the millions of workers at smaller companies who are not covered by employer-provided plans.

As the world’s biggest investor with $5.1 trillion in assets, when Blackrock talks, people listen.

When BlackRock does not see progress despite ongoing engagement, or companies are insufficiently responsive to our efforts to protect our clients’ long-term economic interests, we do not hesitate to exercise our right to vote against incumbent directors or misaligned executive compensation.

Photo: Lary Fink REUTERS/Yuri Gripas

You might also like...