BlackRock CEO Larry Fink is the latest executive to have his pay package targeted by proxy advisor ISS

• Blackrock is the last giant of Wall Street So that its executive remuneration plan is criticized by the services of institutional shareholders or Glass Lewis. The proxy advisers, which make recommendations to large investors, have been fiercely criticized by the CEO of JPMorgan Chase, Jamie Dimon, and the CEO of Tesla, Elon Musk.

BlackRock thinks that CEO Larry Fink won his 36.7 million dollars remuneration package after driving the largest asset manager in the world to a successful year in 2024. The largest proxy advisor to the globe is not necessarily in disagreement, but he nevertheless urges shareholders to vote against the remuneration plan for the company's leaders at BlackRock's Annual meeting May 15.

Blackrock is the latest Wall Street giant to obtain a negative voting recommendation from the services of institutional shareholders, or ISS, which advises customers to large and small votes on the proposals concerning the remuneration of managers, corporate governance and other questions. The ISS and the competitor Glass Lewis Lewis recently recommended that shareholders vote against the remuneration packages of Goldman Sachs leaders, and investors' support has dropped at its lowest level in almost 10 years. However, the votes, known as investor speeches voting, are non -binding and simply say to business boards of directors if investors think that the compensation decisions they have made deserve a boost or thumb, essentially.

In the case of BlackRock, Fink made 33% more than the $ 26.9 million he awarded in 2023, according to regulatory deposits. While his basic salary of $ 1.5 million was unchanged, his cash bonus increased from $ 7.9 million to $ 10.6 million. Meanwhile, its total scholarships increased from $ 16.4 million to $ 24.6 million.

The ISS said that this had no problem with these figures, but the proxy advisor thinks BlackRock did not adequately respond to the concerns of the investors raised last year. Only 59% of shareholders ratified the company's remuneration plan during a non -binding vote last May. It was a spectacular decline, the company recognized in its proxy declarationCompared to 93% support received on average over the past decade.

“Blackrock has a long -standing culture for performance compensation, and our executive remuneration program adopts a metric -oriented approach that aligns remuneration on the successful delivery of long -term commercial objectives on behalf of shareholders,” said the company in a statement provided to Fortune.

The company also noted that 2024 was a record year for income, operating profit and investor net entries.

“We appreciate the opinion of our shareholders,” added society, “and we are delighted with continuous commitment.”

In his proxy declaration, BlackRock said he met officers and investors in his 50 largest shareholders, representing around 65% of the company's circulation shares, to respond to concerns after last year's vote. The company recognized negative comments on the awards of unique options for several executives, and none was granted in 2024.

However, this was not enough for ISS, who said that the company had made no commitment to the use and design of such awards in the future. The proxy advisor has also said that investors deserve more clarity on how annual cash incentives are calculated.

“The committee's response to the low voting result last year is considered Fortune.

The proxy advisor has also raised the eyebrows in BlackRock's plans to start paying for Fink a share of the profits made by the company's key capital-investment funds. Known as “interest in”, this is how most PE leaders are paid. Given the status of the company as responsible for alternative assets among the first, BlackRock said that the remuneration of its CEO should be linked to the performance of its approximately $ 600 billion in private assets.

The change is not reflected in the fink package this year, but Iss said it created additional complexity in the evaluation of its salary in the future.

“Based on the disclosure by proxy, nothing indicates that the incentive of the CEO is intended to compensate for part of the current remuneration opportunities,” said ISS.

When he was contacted to comment, BlackRock noted that Glass Lewis recommended on Monday that shareholders vote in accordance with management on all questions. Glass Lewis did not immediately respond to Fortune Request for a comment or a copy of its relationship to customers.

Jamie Dimon, Elon Musk Ride Proxy Advisors

The two proxy advisers also recommended that shareholders vote against the remuneration packages of Goldman Sachs leaders, including CEO David Solomon and his alleged successor, John Waldron. Only 66% of shareholders voted in favor of the plan, the lowest level of support since 2016, the Financial time reported. Opponents included the sovereign heritage fund of Norway and Callstrs, the second largest pension fund in the world.

A remuneration plan for the American bank had not experienced such low support, according to the FTSince 2022, when two -thirds of JPMorgan Chase shareholders have rejected a package for CEO Jamie Dimon, which included a special award of $ 50 million.

The CEO of Dimon and Tesla, Elon Musk, who proposed a remuneration package launched an prolonged legal challenge, were not surprisingly the criticisms of the ISS and the Glass Lewis, which represent much more than 90% of the market of their services.

The head of JPMorgan qualified the two proxy advisers “incompetent” at a conference in March and said that they had prompted companies to flee a suffocating regulatory environment on public procurement.

Musk, on the other hand, compared the ISS to Isis, the terrorist organization also known as the Islamic State, after the proxy advisor recommended that Tesla shareholders vote against his $ 56 billion remuneration package in 2024. This proposal has since been hit twice by a Delaware judge, which prompted Musk to reincorporate the Maker Texas.

This story was initially presented on Fortune.com