Bluebell Capital Partners, a London-based activist investor, is intensifying its campaign towards BlackRock by proposing that Larry Fink, the chief executive officer and chairman, should not hold both positions. The shareholder proposal aims to bring about a restructuring of the board and appoint an independent chair to improve scrutiny, as disclosed by BlackRock in its annual proxy filing on Thursday.
Bluebell has been scrutinizing BlackRock’s actions related to ESG investing for around three years. Its main contention is that BlackRock has adopted conflicting and inconsistent strategies, which amplify the firm’s exposure to potential greenwashing risks.
BlackRock’s board has rejected this proposal, stating it is not in the best interest of shareholders. They consider that having Fink, at 71, in both leadership roles offers the most suitable and efficient structure for the board and the company. Fink possesses more than three decades of strategic leadership experience and an incomparable understanding of BlackRock’s operations, risks, and business.
Co-founded by Giuseppe Bivona and Marco Taricco, Bluebell has instituted campaigns against various companies, including Danone SA, a yoghurt maker, Cineplex, a movie-theatre chain based in Toronto, chemical manufacturer Bayer, and pharmaceutical company GSK. Bluebell’s prior targets have drawn the interest of other investors, such as Elliott Investment Management and Artisan Partners.
Fink co-established BlackRock in 1988 and facilitated its public listing in 1999. BlackRock shares have increased by an average annual rate of 20%, as opposed to the S&P 500’s 7.8%. The annual proxy filing also revealed that Fink’s compensation for the previous year amounted to nearly $26.9 million, marking a decrease of 18% from 2022, according to Bloomberg.