BlackRock CEO letter 2019

This week the CEO of Blackrock wrote to the CEOs of companies in which it invests, plus shared its updated investment guidelines - full details of the letter are at http://bit.ly/JPNBRletter

An important theme which resonated with me is around the need for companies to have a clear purpose - “purpose unifies management, employees and communities…guides culture, provides a framework for consistent decision making, and ultimately, helps sustain long-term financial returns for the shareholders of your company”.  

In my view, high salaries may help attract talent, but to retain talent and ensure strong discretionary effort, employees need to feel their daily work is contributing to a broader purpose outside of monetary gain.