A spectre is haunting Wall Street—the spectre of activism! Or, as BlackRock chief Larry Fink and his snappily-named Focusing Capital on the Long Term might put it in slightly less Marxian terms, the scourge of short-term thinking. Either way, it’s become apparent to all involved that simply waiting for Carl Icahn to retire won’t solve the problem anymore, not when you can encourage a CEO to run a company into the ground in three years and make more money than he or she would investing in the future. So, brainstorming time: How do you fix it? They’re not quite sure yet, but they’re happy you’re thinking about it now, too.
What exactly the group concluded in their closed-door meeting hasn’t yet been announced. It plans to release more specifics, but in interviews, the co-chairs portrayed the forum as a first step toward implementing goals that are still being ironed out. The co-chairs acknowledged they need to convince players that their solutions can actually help even.
“The most important concrete step was bringing greater awareness,” said Laurence Fink, the head of BlackRock Inc. and one of the co-chairs.
BlackRock’s Fink, McKinsey Lead Group Fighting Wall Street Myopia [WSJ MoneyBeat blog]