Larry Fink Maintains Short Term Focus Hurts Corporations, Society

When Blackrock’s Larry Fink wrote in a well-publicized letter that a corporation should operate with their long-term shareholders in mind, he didn’t realize that it would cause such a controversy. His point was more about the need to have more long term thinking in corporate management. He points to a short-term thinking that cannot last, including corporate management handing out 108 percent of earnings in stock repurchases.

Fink doesn't have problems with activists who are long term focused

Speaking at the DealBook conference at the Whitney Museum of American Art in New York, Fink was consistent in addressing corporate management that accommodates aggressive activist investors. Questioned by Andrew Ross Sorkin, Fink reflected on what was perhaps among his more controversial statements made by the...