NEW YORK: BlackRock Inc CEO Larry Fink on Friday criticized a policy backed by U.S. President-elect Donald Trump to entice U.S. companies to bring their swelling overseas cash piles home, saying a tax holiday may do little to boost growth.Trump, who takes office Jan. 20, has proposed allowing repatriation of that cash at a 10 percent tax rate, hoping some of it would be spent on hiring and business investments.Companies such as Apple Inc, Pfizer Inc, Microsoft Corp hold nearly $1.8 trillion overseas, Moody's Investors Service Inc estimated last month. By doing so, they avoid a 35 percent U.S. corporate tax rate. BlackRock also votes on the composition of those companies' boards as well as on governance proposals from management and shareholders.From his perch, Fink has repeatedly urged top CEOs to focus on creating long-term value instead of emphasizing quarterly targets.Buybacks can boost earnings per share figures because the practice lowers the number of shares on issue. In the past Fink has said that executives have relied too much on buybacks and dividend increases rather than making investments in the long-run success of their businesses.BlackRock on Friday hiked its own quarterly dividend by 9 percent and ramped up its share buyback program but said it did so after making investments in its future growth. Analysts have said lower-tax repatriation could also be a big boost for asset managers.Fink, who had donated to Democratic presidential candidate Hillary Clinton, recently joined an advisory council to Trump that includes several other CEOs.

Source: The Star January 14, 2017 00:44 UTC