World’s Largest Asset Manager: CEOs Should Not Serve on Other Boards

August 27, 2019 | News, Private Equity

BlackRock voted against 94 CEOs who wanted to serve on more than one board outside their company

The world’s largest asset manager is taking aim at chief executives who sit on the board of directors of different companies. In a 32-page report, the company showed it had voted against 94 different CEOs who ran for re-election to the boards of firms that are not their own.

World’s Largest Asset Manager Has Concerns

BlackRock has raised concerns that CEOs are taking too much time to advise other companies. BlackRock is concerned about any CEO who serves on more than one board that is not their own. In the past, they had viewed two outside board seats as manageable.

But the company has established a new policy this year to discourage the behavior.

During the previous proxy season, it had voted against 32 CEOs who we’re in that position. This year, the figure has increased dramatically.

“It sounds fine to sit on multiple boards, but what happens when something goes wrong at a company?” BlackRock vice chairman Barbara Novick said in an interview with Reuters. “More and more companies are limiting how many outside boards their CEOs can sit on.”

Massive Influence

BlackRock has $6.8 trillion under management. Therefore, it wields significant influence in the structure of corporate boards.  The company’s report also showed that it opposed directors at 52 companies who failed to meet BlackRock’s standards on issues like gender, ethnic diversity, age diversity, and other types of diversity standards.

Despite this report, BlackRock has faced criticism recently over its environmental and investing record.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
FinTech: Lloyds To Acquire Stake In Loyalty App Bink
January 4, 2022     FinTech, News

Lloyds Banking Group (LON: LLOY), Britain’s biggest mortgage provider, will acquire a minority stake in loyalty app Bink, according to a report by Sky News for an undisclosed amount that…
Digital Assets: Coinbase CEO Armstrong Said To Have Splurged $133M On Home In LA
January 4, 2022     Digital Assets, News, Real Estate

An iconic property in Bel Air, Los Angeles, designed by internationally acclaimed English architect John Pawson changed hands last month for $133 million and the buyer was Coinbase (NASDAQ: COIN)…
Alternative Investments/ESG: VegTech Invest Launches Plant-Based Innovation & Climate ETF

VegTech Invest advisory has launched the VegTech Plant-based Innovation & Climate ETF (Ticker: EATV), its first financial product. The ETF offers exposure to publicly traded companies actively innovating with plants…超·世界.png
Venture Capital: Chinese AI Startup Parametrix Raises $100M, Turns Unicorn
January 4, 2022     Artificial Intelligence, News, Venture Capital

Chinese AI company has raised $100 million in a Series B round led by Sequoia China and joined by existing investors 5Y Capital and Gaorong Capital. Though the valuation…