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Activist investor wants to replace Larry Fink as BlackRock CEO

activist investor wants to replace blackrock ceo

BlackRock Inc (NYSE: BLK) is in focus on Wednesday after Bluebell Capital Partners called for Larry Fink to step down as Chief Executive of the investment company.

Bluebell co-founder’s interview with CNBC

The activist investor wants to replace Fink who’s held that position since 1988 for being inconsistent on the ESG front. On CNBC’s “Squawk Box Europe”, Giuseppe Bivona – the Co-Founder of Bluebell Capital said:

We have developed a clear understanding of the discrepancy and the gap between what BlackRock constantly says on ESG and what they actually do.

In its letter to BlackRock, the hedge fund also accused CEO Fink of politicizing the ESG debate. It is noteworthy here that Bluebell Capital Partners doesn’t have a particularly big stake in the multinational asset manager.

BlackRock stock is down over 20% for the year at writing.

BlackRock is still investing in fossil fuels

Bluebell Capital is pushing for management change as BlackRock continues to make sizable investments in fossil fuels. In 2020, it promised to divest out of coal – a stance it’s since abandoned now that coal prices have surged more than three-fold, Bivona noted.

According to BlackRock, its policies are based on what’s economically most-suitable for its clients. Disagreeing with that narrative, the Bluebell co-founder said:

In our latest activist campaign at Richemont, they’ve been opposing increase of board representation for investors owning 90% of the company from one to three. I don’t think that’s in best interest of investors or any shareholder.

According to Reclaim Finance, BlackRock is still committing billions to new coal projects.

The post Activist investor wants to replace Larry Fink as BlackRock CEO appeared first on Invezz.