Essay CG Report

Submitted By Yogor-Li
Words: 1284
Pages: 6
Open Document
Corporate Governance Analysis Report

Corporate Name: BlackRock, Inc.(BLK)
Yuange Li

1. Executive Summary
1.1 Objective
The purpose of this report is to evaluate the corporate governance performance of the
BlackRock, Inc. basing on its US SEC filings, and then to use the relevant findings and information to discuss the implications for the company, investors, regulators, and the economy.
1.2 Background
While evaluating the corporate governance performance of the company, it is crucial to focus on the four pillars of corporate governance, including responsibility, accountability, transparency, and equality. As for methods, SWOT analysis and Self-Diagnostic Survey are useful.
1.3 Main Findings
According to the assessment of corporate governance performance of the company, BlackRock, Inc. is generally good with respect to protecting the stakeholders’ right and other stakeholders’ right. Nevertheless, it still has some important aspects to cope with in order to further improvement, such as board responsibility and fair treatment to small shareholders.

2. General Information and SWOT Analysis
2.1 Fundamental Information
BlackRock, Inc., founded in 1988 with base in New York City, is a leading publicly traded investment management firm. It owns $4.652 trillion of assets under management at December 31, 2014. With employees in more than 30 countries who serve clients in over 100 countries across the globe, BlackRock provides a broad range of investment and risk management services to institutional and retail clients worldwide. PNC Financial Services Group, Inc., Norges Bank Investment Management and Wellington Management Company, LLP are the top three institutional holders of the company, accounting for about 33% of the shares. Vanguard/Wellington Fund Inc., the top mutual fund holder, and Fink Laurence, the major direct holder, are holding around 3% shares of the corporation altogether.

2.2 Financial Information
In terms of financial performance, BLK shows advantages in revenue, gross margin and EPS among its competitors according to the following table. With the highest EPS while the lowest P/E ratio, the investors could get shares of BlackRock, Inc. at a relatively lower price while enjoying a higher profit, which is an advantage for the company’s future development. The stock price of BLK is USD366.05 on May 5, 2015. Direct Competitors
BLK
LM
STT
UBS
Revenue (ttm):
11.13B
2.80B
10.28B
29.29B
Gross Margin (ttm):
0.55
0.36
N/A
N/A
EPS (ttm):
19.69
1.9
4.57
0.95
P/E (ttm):
18.59
28.85
17.23
22.42

LM = Legg Mason Inc.
STT = State Street Corporation
UBS = UBS Group AG
*Source from Yahoo Finance
2.3 SWOT Analysis
A SWOT analysis is a tool that companies use in order to understand what they do well and where they could improve. Strengths and weaknesses describe the internal perspective of a company which can be controlled and influenced. Opportunities and threats, however, are concerned with the market which cannot be controlled.
As for strength, BLK specially organizes a team named Corporate Governance and Responsible Investment (CGRI) to help protect its customers’ right. Because BLK is an asset management corporation, it has to evaluate the project and the company which it invests in. The establish of the CGRI is in purpose of evaluating and engaging with invested companies on environmental, social, and corporate governance issues (ESG) on behalf of BlackRock's clients globally. In order to safeguard the right of its shareholders, BLK also develops an electronic voting system to ensure every shareholders could exercise their rights. Besides, shareholders of BlackRock can hold directors accountable by removing them from office if they fail to act on their behalf.
As for weakness, BLK does not take efforts in protecting the right of minority shareholders. It avoid the cumulative voting to come into effect and reject the small shareholder to nominate the directors of the executive team. Moreover, the
Show More

Related Documents: Essay CG Report

Corporate Governance in Banking Sector of Bangladesh Essay

|Chapter 1: Background of the paper | 1.1 Introduction Globalization of financial markets and fears of financial instability have brought the issue of the corporate governance into forefront of the policy discussions. In an increasingly deregulated policy environment, the big corporate failures have raised the need for implementing competent corporate governance practices. The recent financial crises…

Words 16145 - Pages 65

Compression Garments Essay

observed is the widespread usage of compression garment (CG) during training or competition [1- 4]. The origin of the usage of compression garments could be traced back as early as 460 BC, when it was initially used as a form of treatment in human injuries [5]. 1.2 Studies conducted on Compression Garment (CG) The first exercise-related research was conducted by Berry et. al. (1987) to determine the effects of CG on blood lactate levels in the body. CG worn…

Words 1506 - Pages 7

Corporate Relationship In Corporate Governance In Family Business In Serbia

most cases to the failure of the family business. All the above mentioned reasons for the failures of family businesses stem from various weaknesses in Corporate Governance (hereinafter: CG) practices employed in family businesses. Therefore, several researchers have investigated the relationship between the level of CG and family businesses as to determine whether these…

Words 6665 - Pages 27

Accounting Policies For Financial Statements

of the new standards did not have a material impact on the consolidated financial statements (2010 Annual Report). " To maintain global competitiveness, we have implemented rationalization actions over the past several years to reduce excess and high-cost manufacturing capacity and to reduce selling, administrative and general expenses though associate headcount reductions" 2010Annual Report) "The consolidated financial statements include the accounts of all majority-owned subsidiaries and…

Words 2533 - Pages 11

Business Comms Essay

between Contingency theory and the merged organisation 3 4. Conclusion 4 5. Recommendations 5 Appendices Section 9 Appendix 1 10 Appendix 2 11 1. Terms of Reference Fiona Balloch requested the report to be generated to provide information on the structure of Joy of Chocolate and CG Chocolates. The purpose of the…

Words 1591 - Pages 7

Well Elder Swot Analysis

Well Elder CG, 77 yo male; diabetes mellitus type 2, degenerated heart Strength: • Lives independently • Currently drives- able to active in the community • Attends church every Sunday and is an active volunteer • Actively involved with network of friends • Goes golfing • Enjoys fishing • Participates in target practice • Occasionally walks around the neighborhood • Exercises at the gym at memorial hospital 3 times a week for 1 hour each time • Understands limitation if fatigued he will rest • Minimal…

Words 320 - Pages 2

Charge to Mass Ratio of the Electron Essay

ratio of the electron. In this paper, we derived the relationship between this ratio and measurable quantities, detailed our experimental setup, with in depth and specific circuit diagrams. We determined the mass to charge ratio to be 6.54341±.00474661e7[Cg − 1] with a percent difference of 63%. Because of the large error, we explore possible sources of error. I. INTRODUCTION a perfect circle. Thus: m v2 = qvB r (II.3) The ratio of the mass of an electron to its…

Words 2483 - Pages 10

Essay about Business Ethics Poster

expression, and innovation. They favour practical solutions that can be adopted worldwide, with a mission to inspire the world to reduce carbon emissions whilst simultaneously driving economic development and building a culture against climate change. ‘CG’ FOR launch of chip: Potential Response: Obtaining Power, Legitimacy & Urgency. They would be considered a Definitive Shareholder and support would be immediate, through this support/alignment could mean the Halochip receives some extra product ratification…

Words 1305 - Pages 6

Assignment Essay

BUSINESS SOCIETY and ETHICS (BBMM501) Case Study Report DUE WEEK 5.1 Learning Outcome Assessed: a - e Weighting: 30% Written Report Case Study Analysis (2000 words) Assessment -2 Ethics, morality and leadership: The AWB scandal The series of corporate scandals and transgressions that have emerged over the last decade, including those associated with Fannie Mae, Freddie Mac, Alcoa, Enron, HIH, Merck, Lehman Brothers, Parmalat, Union Carbide and WorldCom, have not only contributed to global financial…

Words 2063 - Pages 9

Essay about Pixar and Alvy Ray Smith

Business Report for Pixar 06/11/2014 Student Number: 121212212 Pixar was founded as The Graphics Group, which was one third of the Computer Division of HYPERLINK "http://en.wikipedia.org/wiki/Lucasfilm" \o "Lucasfilm" Lucasfilm that was launched in 1979 with the hiring of Dr. Ed Catmull from the New York Institute of Technology (NYIT),[6] where he was in charge of the Computer Graphics Lab (CGL). At NYIT, the researchers pioneered many of the CG foundation techniques—in particular the invention…

Words 1309 - Pages 6