BlackRock Inc. named John Kelly, a former senior executive at Microsoft Corp. and Starbucks Corp., to oversee public policy and communications as lawmakers continue to scrutinize the world’s largest money manager, especially over ESG investing.
(Bloomberg) — BlackRock Inc. named John Kelly, a former senior executive at Microsoft Corp. and Starbucks Corp., to oversee public policy and communications as lawmakers continue to scrutinize the world’s largest money manager, especially over ESG investing.
Kelly, 57, will start in August as BlackRock’s first global head of corporate affairs and also lead the company’s branding and philanthropy, Chief Executive Officer Larry Fink said Thursday in a memo to employees.
“The universe of BlackRock stakeholders has grown dramatically,” Fink wrote. That’s why the firm has been engaging with policymakers and other community leaders where it operates, along with employees, shareholders and clients, he added.
Kelly’s role will build on that work, according to the memo.
BlackRock has grown into a behemoth of asset management, with $9.1 trillion invested worldwide for pensions, sovereign wealth funds, high-net-worth individuals and retail clients as of the end of March. The money flowing into equity index funds since the 2008 financial crisis has made BlackRock a top-five shareholder in almost every S&P 500 company.
Fink’s profile has also risen through his annual letters to corporate executives, inviting criticism along the way.
“Particularly in this complex environment, we must ensure that our voice, as a trusted fiduciary for our clients, resonates with all of our stakeholders,” Fink wrote in the memo.
Jim Badenhausen, global head of corporate communications, told Fink in January that he plans to step back from his current role in 2024 after a dozen years, according to the memo. He’ll work with Kelly during the transition and on a succession plan to fill that role.
Kelly was most recently senior vice president for brand, communications and corporate affairs at Roku Inc. after spending seven years in a similar role at Starbucks. He worked in legal roles at Microsoft for 15 years, including in Brussels overseeing public policy. Earlier in his career, Kelly was an aide to former US Senator Slade Gorton and former US Representative Rick White, both Republicans from Washington.
Political Pressure
BlackRock has faced blowback from both ends of the political spectrum over environmental, social and corporate governance investing. Some on the right say its policies harm the fossil-fuel industry, while others on the left argue it’s not doing enough to curb climate change.
The firm has been criticized by Republican lawmakers in Washington and across the US over the past year for supporting sustainable investing, leading Fink to call the attacks “personal,” “ugly” and full of misconceptions. At least six states said they’d pull more than $3 billion from the firm.
Read More: Larry Fink Says ESG Narrative Has Become Ugly, Personal
BlackRock’s former head of external affairs was among finance industry executives who were grilled by Texas lawmakers in December.
To mount a response, BlackRock poured money into US political campaigns last year, started an advertising campaign to explain its business of managing money for retirees and brought on additional lobbyists in Texas and Washington.
Read More: BlackRock’s Political Spending Hits Record Amid ESG Fallout
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