Not skipping through a field of Bluebell’s

Bluebell Capital Partners has put forward a binding resolution to split the roles of chair and CEO at BlackRock

This news highlights an ongoing power struggle within BlackRock, the world's largest asset manager. Here's a breakdown of the situation:

• Bluebell Capital Partners: An activist investor known for challenging the leadership of European companies.

• Binding Resolution: A formal proposal requiring a vote from BlackRock shareholders.

• Splitting Roles: Bluebell proposes separating the positions of Chairman and Chief Executive Officer (CEO) currently held by Larry Fink at BlackRock.

There are two main perspectives on this issue:

Bluebell's Argument:

• Conflict of Interest: They argue that combining the roles of Chair and CEO concentrates too much power in one person and creates a potential conflict of interest. An independent Chair could provide better oversight of the CEO.

BlackRock's Argument:

• Proven Leadership: BlackRock has achieved significant success under Fink's dual leadership. They might argue that separating the roles could disrupt this successful formula.

• Industry Standard: Many large companies have combined Chair and CEO roles, and it's not necessarily a bad practice.

The Outcome:

The vote by BlackRock shareholders will determine the future of these roles. Here are some potential outcomes:

• Splitting the Roles: If the resolution passes, BlackRock would need to appoint a separate Chair. This could lead to changes in the company's governance structure.

• Maintaining Status Quo: If the resolution fails, BlackRock will continue with the current leadership structure.

Bluebell Capital Partners has a history of challenging the leadership and strategies of major European companies. Here are some other notable instances beyond their recent push to split the CEO and Chair roles at BlackRock:

• Glencore: Bluebell criticized Glencore, a Swiss multinational commodity trading and mining company, for its focus on coal production, arguing it contradicted its commitment to sustainability. They pushed for the company to consider a separation of its coal business.

• Vivendi: Bluebell targeted the French media conglomerate Vivendi, calling for the removal of certain board members and criticizing the company's complex corporate structure. They argued for a simplification of the structure to improve transparency and shareholder value.

• Danone: Bluebell took aim at the French food and beverage giant Danone, questioning the CEO's performance and advocating for changes in the company's board composition.

• Bayer: Bluebell even ventured into the German pharmaceutical and agricultural giant Bayer, calling for a breakup of the company due to its perceived underperformance.

These challenges highlight Bluebell's focus on several key areas:

• Corporate Governance: They advocate for better board oversight, transparency, and accountability to shareholders.

• Environmental, Social, and Governance (ESG) Issues: They push companies to prioritize sustainability and responsible practices.

• Shareholder Value: They focus on strategies and leadership that maximize returns for investors.

Bluebell's activist approach, even with a relatively small stake in the companies they target, has garnered attention and sometimes forced changes within these corporations. They act as a voice for specific viewpoints on corporate governance and sustainability within the business world.

What to Watch:

It will be interesting to see how BlackRock shareholders vote and the future of Larry Fink's leadership role. This power struggle could also set a precedent for corporate governance practices in the financial industry.