BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group that manages BlackRock’s stewardship engagement and voting on behalf of clients invested in liquid active strategies globally. BAIS works in partnership with BlackRock’s active investment teams to support long-term financial value creation.
BlackRock Active Investment Stewardship
BAIS Global Engagement and Voting Guidelines
BAIS’ Guidelines outline the factors we consider when we engage and vote on matters that are commonly included on shareholder meeting agendas. They are not prescriptive and are applied in the context of a company’s operating environment and an active equity portfolio manager’s investment strategy, anchored in BlackRock’s fiduciary duty to clients.
Engagement priorities
BAIS develops its engagement strategy in close partnership with members of the active investment platform, ensuring both alignment and effectiveness. Over time, we have observed a number of consistent themes on which we engage with companies.
Board quality and effectiveness
A company’s board plays a central role in its success and financial performance over time. Directors individually bring their expertise and experience to advising management and, as a collective, the board provides strategic direction, oversight and governance that guides the company in achieving its purpose and strategic objectives.
Strategy, milestones, and financial resilience
A clearly articulated strategy and milestones consistent with a company’s business cycle help investors and other stakeholders understand how it is fulfilling its purpose, meeting its objectives and delivering financial returns that are resilient over time.
Executive incentives
Effective executive compensation policies are crucial for aligning management incentives with company strategy and financial performance. Well-designed compensation plans have rigorous but realizable targets that incentivize appropriate risk taking, and balance near- and long-term awards.
Climate-and nature-related risks and opportunities
Climate change and natural capital management are closely linked and could present both material risks and opportunities for companies and shareholders.
Company impacts on people
As employers, companies’ human capital management practices shape their ability to attract, develop and retain the key talent they need to have a competitive advantage in the market. A company’s performance may be improved through fair employment practices, safe work environments and a culture that supports employee engagement and productivity.
Stewardship in action
Stewardship by the numbers
476
Engagements
347
Companies engaged
10,942
Meetings voted
110,130