BlackRock Wants to Know Why You Missed Your Target
BlackRock's newest proxy voting guidelines signal that investors continue to want to see companies break down their long-term goals into shorter-term targets — and for companies to be transparent in disclosing their progress. 17 January 2025
BlackRock’s latest proxy voting guidelines reinforce the growing investor expectation for companies to break down long-term goals into measurable short-term targets and disclose their progress transparently. As boards prepare for the 2025 proxy season, they should ensure they are actively reviewing past commitments, refining key performance indicators, and clearly communicating priorities to investors.
Commenting to The FT Agenda, SquareWell Partner Ali Saribas highlighted that BlackRock’s guidelines apply broadly to all targets companies have set. Investors are increasingly scrutinizing how boards oversee target-setting, their access to management, and their involvement in risk oversight. Transparency around board discussions—including disagreements—is also critical for building investor trust.
Companies should be proactive in explaining missed milestones, the rationale for any revisions, and the assumptions underlying their targets, ensuring investors have a clear view of decision-making processes. BlackRock’s stance underscores the importance of engagement, humility, and transparency in maintaining strong investor relationships.
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