Laurence D. Fink, who runs the world’s largest asset manager, urged the chief executive officers of leading companies to stop offering quarterly earnings guidance and increase their focus on long-term goals.
"Today’s culture of quarterly earnings hysteria is totally contrary to the long-term approach we need," Fink, the CEO of BlackRock Inc., wrote in a letter to more than 500 companies, a copy of which was obtained by Bloomberg News. Instead of focusing on small deviations from analysts’ earnings estimates, management should use quarterly reports to demonstrate progress against strategic plans, he wrote.
