I'm going sit right down and right myself a letter.
On Tuesday morning, the CEOs of 500 of the nation’s largest companies received a letter in the mail that will most likely surprise them.
The New York Times reports that the sender of the letter is Laurence Fink, CEO of BlackRock, the largest asset manager in the world.
Fink oversees more than $4trillion of investments, making him perhaps the world’s most important shareholder.
He is telling the leaders that too many of them have been trying to return money to investors through so-called shareholder-friendly steps like paying dividends and buying back stock.
To Fink, these maneuvers, often done under pressure from activist investors, are harming the long-term creation of value and may be doing companies and their investors a disservice, despite the increases in stock prices that have often been the result.
To access the complete New York Times article hit the link below: