BlackRock will give particular attention to the board’s determination of how executive compensation aligns with the financial interests of long-term investors. Recognizing the importance of executive compensation as a tool to drive long-term financial value, BlackRock will engage with companies if it identifies misalignments between executive pay and company performance.
Compensation incentives aligned with financial value creation. BlackRock will engage with companies on their long-term corporate strategy, purpose, and financial resilience to understand how companies align their long-term corporate goals with their capital allocation. BlackRock believes that purpose-driven companies that effectively balance key stakeholder considerations and deliver financial value for their shareholders are better able to attract long-term capital and navigate volatility. Strategy, purpose, and financial resilience. Specifically, BlackRock’s key board engagement topics will be board composition, independent leadership, board oversight of management, board and management succession planning, and the board’s own nomination and evaluation process. BlackRock believes that a high-caliber, effective board responsible for overseeing and advising management and being accountable to shareholders is fundamental to a company’s financial success and ability to create long-term value. Fink’s 2023 letter, both of which should inform public company disclosure and engagement with BlackRock and other important investors.īlackRock’s Five Engagement Priorities for 2023 Below, we discuss BlackRock’s 2023 engagement priorities, as well as the key takeaways from Mr. Fink’s letter, the message from BIS is that it does not tell companies what to do, but rather that its role is to engage with companies and encourage disclosure to help its clients understand how company leadership is managing risk and capitalizing on opportunities to enhance long-term shareholder returns. 
On the heels of the annual letter from BlackRock Chairman and CEO Larry Fink to investors, BlackRock Investment Stewardship (BIS) released its list of engagement priorities for 2023, which are generally consistent with those from prior years.
As the 2023 annual meeting season begins, asset managers and large institutional investors are engaging with companies on a range of issues.
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