06 Sep Vanguard Open Letter to Boards
In 2016, Larry Fink, the CEO of $5.7 trillion dollar BlackRock Investment wrote a letter that was widely circulated among companies throughout the country. That letter spoke out against “short-termism” and advocated “that every CEO lay out for shareholders each year a strategic framework for long term value creation.”
This year, William McNabb, Chairman and CEO of $500 billion institutional investor Vanguard wrote a letter that will likely get broad circulation among C suites. In the letter, he advocates the traditional issues of quality of the Board, Governance, Compensation and Risk however, he also details strong points of view about women on Boards and climate risk and why he believes addressing both are financial imperatives for companies. We think it’s an important read for each of our Fellows.
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