BlackRock Faces Investor Backlash Over Executive Pay Transparency
BlackRock, the world’s largest asset manager, continues to grapple with investor discontent following last year’s historic revolt against its executive compensation plan. Proxy advisory giants ISS and Glass Lewis had recommended shareholders reject the say-on-pay proposal—advice that was heeded in one of the most aggressive protest votes the firm has ever faced.
The board’s compensation committee attempted damage control through shareholder outreach, revealing two key pain points: opaque decision-making processes around pay and the use of unconditional one-time bonuses. Despite these efforts, BlackRock has made minimal structural changes to address these concerns, leaving fundamental transparency issues unresolved.