BY STACEY LENNOX 5:46 PM ON DECEMBER 13, 2022
It has been a bad couple of months for BlackRock and its CEO, Larry Fink. Earlier this quarter, one analyst downgraded its stock due to the risk posed by Environmental, Social, and Governance (ESG) investing. Several states have announced they will remove pensions and other state treasury funds from the asset manager. Last week, the firm was subpoenaed by the Texas State Senate. Finally, on Friday, North Carolina Treasurer Dale Folwell called for BlackRock CEO Larry Fink to step down in a bombshell letter addressed to the investment company’s Board of Directors, which includes Fink.
While several states have withdrawn proxy votes and divested state funds from BlackRock, Folwell is the first to take this bold step. “Given his [Fink’s] dogged pursuit of these political objectives over a number of years, I’m skeptical that he would or could lead the necessary course correction. Having lost confidence in his leadership to responsibly steward investors’ resources, I request, quite simply, that he resign or be removed from the asset management firm’s leadership team immediately,” the letter closes.