LongHaul Posted April 24, 2014 Share Posted April 24, 2014 Buffett is a great investor and a great person - so I am nitpicking here, but I still think it is important. I disagree with Buffett abstaining from voting against Coke's compensation plan. Buffett clearly didn't agree with the plan and thought it was excessive. I think it is a weak argument that because he didn't want express disapproval of mgmt he didn't vote against a potentially highly dilutive/excessive plan. It is a bad precedent and lacks courage. Three key virtues are wisdom, justice and courage. If you lack courage, then wisdom and justice will not be implemented . Thoughts? Here are his key comments from the CNBC transcript. "BECKY: That was 83 percent for the votes that were cast. Why— why did you abstain? BUFFETT: Well, we abstained because— we didn't agree with the plan. We thought it was excessive. And— I love Coke. I love the management, I love the directors. But— so I didn't want to vote no. It's kind of un-American to vote no at a Coke meeting. So (LAUGH) that's— but we— I didn't want to express any disapproval of management. But we did disapprove of— of the plan. The plan— compared to past plans was a significant change. And— there's already a 9 percent or so overhang in terms of options outstanding relative to the amount of sh— shares outstanding, 8 percent— 8 percent— 8 percent to 9 percent. And— this authorization of another 500 million shares. Not all of which would've gone on options. But that's another 11 percent of the company. And— and— I thought it was too much. And— I talked to my partner Charlie Munger, and he thought it was too much. So we abstained." Link to comment Share on other sites More sharing options...
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