In his annual shareholder letter, BlackRock chief executive Larry Fink acknowledged allegations of harassment and discrimination within the asset manager’s ranks and said that it would work to build a “supportive, welcoming, inclusive and equitable work environment”.
“I know our culture is not perfect…in some cases, certain employees have not upheld BlackRock’s standards. I have made it clear to employees that we want to know when that happens, and those individuals don’t have a place at BlackRock,” Mr Fink wrote.
“Rooting out misconduct – and ensuring an environment that doesn’t allow it – is critical to building the culture we all aspire to.”
The comments follow media reports that BlackRock employees experienced both sexual harassment and racial discrimination at the hands of executive leadership – allegations that contrast sharply with the positive image that BlackRock and Mr Fink have cultivated over the last several years. Mr Fink said that BlackRock had now retained an external law firm to conduct a review of the reports and provide recommendations on how to address them.
“BlackRock must have a supportive, welcoming, inclusive and equitable work environment. This includes drawing on the expertise of people with varied backgrounds and perspectives,” Mr Fink wrote.
In February, two former BlackRock employees – Mugi Nguyai and Essma Bengabsia – penned an open letter to Mr Fink, alleging they were the victims of systemic harassment during their time at the firm and urging him to take “definitive action” to end the problem.
“This may not be what BlackRock strives for, but this is where you are now. BlackRock’s culture will only change through definitive action by its leadership, and the first step to solving a problem is acknowledging it exists,” they wrote.
“You lead the largest investment firm on Wall Street and are a crucial player in global capital markets. You can use this opportunity to illustrate exemplary leadership, then encourage other industry leaders and CEOs across sectors to follow.”
