For several years, leaders at S&P 500 companies have received a letter from Larry Fink, the CEO of BlackRock, an investment firm with over $4.6 trillion under management. This year, the letter encouraged company leadership to invest in long-term value creation, to disclose more clearly their strategies for long-term growth and to expressly affirm to shareholders that the board has reviewed the strategic plan. According to the letter, “Today’s culture of quarterly earnings hysteria is totally contrary to the long-term approach we need...With clearly communicated and understood long-term plans in place, quarterly earnings reports would be transformed from an instrument of incessant short-termism into a building block of long-term behavior.” The letter also encourages companies to link elements of executive compensation to the long-term growth strategy and to consider the long-term financial impact of environmental, social and governance issues. Read Larry Fink’s letter.

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