Laurence D. Fink
Laurence D. Fink
Laurence Douglas Fink
November 2, 1952 (age 66)
|Education||University of California, Los Angeles (BA, MBA)|
|Occupation||Chairman & CEO of BlackRock|
|Net worth||US$1 billion (April 2018)|
He is the chairman and CEO of BlackRock, an American multinational investment management corporation. BlackRock is the largest money-management firm in the world with more than $6 trillion in assets under management. In April 2018, Fink's net worth was $1 billion.
Early life and education
Fink grew up in a Jewish family in Van Nuys, California, where his mother was an English professor and his father owned a shoe store. He earned a BA in Political Science from UCLA in 1974. Fink is also a member of Kappa Beta Phi. He then received an MBA in Real Estate at the UCLA Anderson Graduate School of Management in 1976.
1970 to 2000
Fink started his career in 1976 at First Boston, a New York-based investment bank. Eventually taking charge of First Boston's bond department, Fink was instrumental in the creation and development of the mortgage-backed security market in the United States. At First Boston, Fink was a member of the Management Committee, a Managing Director, and co-head of the Taxable Fixed Income Division; he also started the Financial Futures and Options Department, and headed the Mortgage and Real Estate Products Group.
Fink added as much as $1 billion to First Boston's bottom line. He was successful at the bank until 1986, when his department lost $100 million due to his incorrect prediction about where interest rates were headed. The experience influenced his decision to start a company that would invest clients' money while also incorporating comprehensive risk management.
In 1988, under the corporate umbrella of The Blackstone Group, Fink co-founded BlackRock and became its Director and CEO. When BlackRock split from Blackstone in 1994, Fink retained his positions, which he continued to hold after BlackRock became more independent in 1998. His other positions at the company have included Chairman of the Board, Chairman of the Executive and Leadership Committees, Chair of Corporate Council, and Co-Chair of the Global Client committee. BlackRock went public in 1999.
In 2003, Fink helped to negotiate the resignation of the CEO of the New York Stock Exchange, Richard Grasso, who was widely criticized for his $190 million pay package. In 2006 Fink led the merger with Merrill Lynch Investment Managers, which doubled BlackRock's asset management portfolio. That same year, BlackRock's $5.4 billion purchase of Stuyvesant Town–Peter Cooper Village, a Manhattan housing complex, became the largest residential-real-estate deal in U.S. history. When the project ended in default, BlackRock clients lost their money, including the California Pension and Retirement System, which lost about $500 million.***** This is BlackStone (not BlackRock) The U.S. government contracted with BlackRock to help clean up after the financial meltdown of 2008. Although BlackRock is widely believed to have been the best choice for the cleanup job, Fink's longstanding relationships with senior government officials have led to questions about potential conflict of interest regarding government contracts awarded without competitive bidding.
In December 2009, BlackRock purchased Barclays Global Investors, at which point the company became the largest money-management firm in the world. Despite his great influence, Fink is not widely known publicly, apart from his regular appearances on CNBC. BlackRock paid Fink $23.6 million in 2010. By 2016, BlackRock had $5 trillion under management, with 12,000 employees in 27 countries.
In 2016, Fink received the ABANA Achievement Award in New York City. The ABANA Achievement Award recognizes an individual who exemplifies outstanding leadership in banking and finance and has a commitment to positive professional cooperation between the US and the Middle East and North Africa.
Fink serves on the board of trustees of New York University, where he holds various chairmanships including chair of the Financial Affairs Committee. He also co-chairs the NYU Langone Medical Center board of trustees and is a trustee of the Boys and Girl's Club of New York. Fink is also on the board of the Robin Hood Foundation. Fink founded the Lori and Laurence Fink Center for Finance & Investments at UCLA Anderson in 2009, and currently serves as chairman of the board.
In his 2018 annual open letter to CEOs, he called for corporations to play an active role in improving the environment, working to better their communities, and increasing the diversity of their workforces. This has been taken as evidence of a move by Blackrock, one of the largest public investors, to proactively enforce these targets. In his 2019 open letter Fink said that companies and their CEOs must step into a leadership vacuum to tackle social and political issues when governments fail to address these issues.
Fink has been married to his wife, Lori, since the mid-1970s. The couple owns homes in Manhattan, North Salem, and Vail, Colorado. The couple has three children. Joshua, their eldest son, was CEO of Enso Capital, a now defunct hedge fund in which Fink had a stake. Fink is a lifelong supporter of the Democratic Party.
- "BlackRock CEO Larry Fink Is Now a Billionaire". Bloomberg News. April 16, 2018. Retrieved November 27, 2018.
BlackRock Chief Executive Officer Larry Fink's personal fortune has at last eclipsed $1 billion, according to the Bloomberg Billionaires Index.
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- Suzanna Andrews: Larry Fink's $12 Trillion Shadow, Vanity Fair, April 2010
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- Roose, Kevin (2014). Young Money: Inside the Hidden World of Wall Street's Post-Crash Recruits. London, UK: John Murray (Publishers), An Hachette UK Company. p. 208. ISBN 978-1-47361-161-0.
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- "Profile: Laurence D. Fink (MBA '76)". Fink Center for Finance & Investments. Los Angeles: UCLA. 2010. Retrieved January 26, 2010.
- "Laurence Fink - News, Articles, Biography, Photos - WSJ.com", Wall Street Journal. Retrieved October 14, 2011.
- "Corporate History". Archived from the original on May 17, 2012. Retrieved March 22, 2014.
- Andrews, Suzanna. Larry Fink’s $12 Trillion Shadow, Vanity Fair, April 2010: "There is little doubt among the financial establishment in Washington and on Wall Street that BlackRock was the best choice to handle the government’s problems."
- "The Wall Street Journal/Hay Group Survey of CEO Compensation". The Wall Street Journal. May 8, 2011. Retrieved October 14, 2011.
- BlackRock shapes shifts NYTimes, September 16, 2016
- "About Us | BlackRock". BlackRock. Retrieved February 23, 2018.
- "2016 ABANA Achievement Award Dinner". ABANA. Retrieved February 23, 2018.
- "Larry Fink". Forbes. Retrieved January 15, 2019.
- "Governance". Robin Hood Foundation. Retrieved January 13, 2015.
- The Laurence and Lori Fink Center for Finance & Investments, Los Angeles, California: UCLA Anderson School of Management, retrieved July 22, 2017
- "Board Leadership | UCLA Anderson School of Management". www.anderson.ucla.edu. Retrieved January 15, 2019.
- Bryan, Bob (December 2, 2016). "Trump is forming an economic advisory team with the CEOs of Disney, General Motors, JPMorgan, and more". Business Insider. Retrieved June 1, 2017.
- Weinbar, Sharon. "How big money can drive diversity in venture capital – TechCrunch". techcrunch.com. Retrieved March 30, 2018.
- Sorkin, Andrew Ross (January 17, 2019). "World's Biggest Investor Tells C.E.O.s Purpose Is the 'Animating Force' for Profits". The New York Times. ISSN 0362-4331. Retrieved January 23, 2019.
- Merced, Michael J. de la; Sorkin, Andrew Ross (October 15, 2018). "Blackstone and BlackRock Chiefs Withdraw From Saudi Conference". The New York Times. ISSN 0362-4331. Retrieved January 18, 2019.
- Miles Costello: Business big shot: Larry Fink,The Times, June 8, 2009
- Copeland, Rob (September 22, 2014). "Financial Elite's Offspring Start Their Own Hedge Funds". Wall Street Journal. ISSN 0099-9660. Retrieved January 15, 2019.
- "A Second-Generation Fink Rises in Finance". The New York Times Company. September 8, 2008. Retrieved January 28, 2010.