On July 21 2016, the CEOs of thirteen high-profile public companies, asset managers and pension and mutual funds released the Commonsense Principles of Corporate Governance. The signatories include some of the most respected names in American business and were headlined by Warren Buffett of Berkshire Hathaway Inc., Mary Barra of General Motors, Larry Fink of Blackrock, Jeffrey Immelt of General Electric, and Bill McNabb of Vanguard. Their open letter states that the purpose of the group was to reach consensus on what “good corporate governance” means in the real world, and that while they recognize that there is significant … Continue Reading
The Wall Street Journal reports that Vanguard Group, the largest mutual fund firm in the U.S., and BlackRock Inc., the world’s largest asset manager, are becoming more assertive in exercising their influence over companies in which they invest. This is a significant development, given Vanguard and Blackrock’s immense shareholdings in large American companies.
BlackRock’s recently revised its U.S. voting guidelines, which now indicate that the company may oppose a director’s re-election over concerns such as insufficient board diversity, inappropriately lengthy tenures, and poor attendance, even over short periods.
A recent letter from Vanguard CEO F. William McNabb III sent to … Continue Reading