Proxy Vote Against Ajit From Calpers

[wescobrk]

This is a quote from Calpers:

“It remains unclear if any portion of [executive] pay is tied to company performance,” ISS said. “The continued lack of transparency raises concern as to whether the compensation committee is providing adequate oversight.”

 

Are you fucking kidding me? The man has created over $50 billion of value per Buffett and Munger and his pay of $16 million is too much? WTF?

[DooDiligence]

54 minutes ago, wescobrk said:

This is a quote from Calpers:

“It remains unclear if any portion of [executive] pay is tied to company performance,” ISS said. “The continued lack of transparency raises concern as to whether the compensation committee is providing adequate oversight.”

 

Are you fucking kidding me? The man has created over $50 billion of value per Buffett and Munger and his pay of $16 million is too much? WTF?

Thanks for posting this.

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Shareholder advisors hating on the players.

www.ft.com/content/490949ae-964e-4291-b58f-d5d4126cf371

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I frequently criticize compensation packages, however, it kind of looks like these guys don’t understand how to evaluate an executive comp package, and they do a poor job of hiring their own managers.

https://apnews.com/article/73d743eb81eb441db0bb784b6e746536

www.ai-cio.com/news/new-calpers-cio-see-2-4-million-payout/

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FWIW, I just sent my thoughts on this to CALPERS.

www.calpers.ca.gov/page/contact

[John Hjorth]

From the 2021 Proxy Statement, p. 8 :

Factors considered by Mr. Buffett in setting the compensation for Mr. Abel, Mr. Jain and Mr. Hamburg are typically subjective, such as his perception of each of their performance and any changes in functional responsibility. Prior to the appointments of Mr. Abel and Mr. Jain as Berkshire Vice Chairmen in 2018, Mr. Buffett set the compensation for each of the CEOs of Berkshire’s significant operating businesses. However, since 2018, it has been the responsibility of Mr. Jain to set the compensation for the CEOs of Berkshire’s insurance businesses and the responsibility of Mr. Abel to set the compensation for the CEOs of Berkshire’s other businesses. Mr. Jain and Mr. Abel use the same general criteria as had been used by Mr. Buffett. Many different incentive arrangements are utilized, with their terms dependent on such elements as the economic potential or capital intensity of the business. The incentives can be large and are always tied to the operating results for which the CEO has authority and are related to measures over which the CEO has control.

Edited April 20, 2021 by John Hjorth

[CapriciousCapital]

Calpers doesn't really have skin in the game here[1]. ISS's recommendation could have a more-then-modest effect[2].

[1] https://www.sec.gov/Archives/edgar/data/919079/000156761921001941/xslForm13F_X01/form13fInfoTable.xml
[2] https://corpgov.law.harvard.edu/2018/06/14/the-big-thumb-on-the-scale-an-overview-of-the-proxy-advisory-industry/

[ValueMaven]

Both should be paid more...not less!!

[wescobrk]

50 billion dividend by $16 million is about 3000 years. Ajit joined Berkshire in the 80's so he worked for maybe 35 years so $50 billion divided by 35 is roughly $1.42billion. I don't remember the exact year Buffett said that but it was over 5 years ago right so 50 divided by 30 is 1.66 and let's say he made another 2 billion or so since then so let's round up to 1.7.

If we use the Buffett performance from his partnership he kept 25% after 6 so roughly 20% let's say so that comes out to roughly $340 million a year you could argue even if you think I'm an idiot for using that number let's cut it in half that is $170 million or an order of magnitude higher than ISS's recommendation.

I never researched how ISS came to be the default for fund managers not to think for themselves but they have some real idiots at ISS!

[Dooba]

What absolute joke. Well deserved for both Ajit and Greg.

[omagh]

On 4/20/2021 at 10:43 AM, wescobrk said:

This is a quote from Calpers:

“It remains unclear if any portion of [executive] pay is tied to company performance,” ISS said. “The continued lack of transparency raises concern as to whether the compensation committee is providing adequate oversight.”

Calpers lacks insight.  Proof is trivial to find.

[scorpioncapital]

calpers is on autopilot algorithm. a prime example of the dangers of AI or any algorithm without much intelligence behind it.

[CorpRaider]

I went and voted my proxys for the tiny amount of B shares I have in favor of management's recommendations just because of this issue.

Edited April 28, 2021 by CorpRaider

[CorpRaider]

WSJ article on the matter.  Asserts that after Buffett leaves there could be a battle for control with these institutions and the long time holders.

 

https://www.wsj.com/articles/warren-buffett-faces-impatient-investors-as-berkshire-hathaway-returns-decline-11619794480?mod=hp_lead_pos4

 

 

Edited April 30, 2021 by CorpRaider

[wescobrk]

On 4/20/2021 at 10:00 AM, DooDiligence said:

Thanks for posting this.

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Shareholder advisors hating on the players.

www.ft.com/content/490949ae-964e-4291-b58f-d5d4126cf371

—

I frequently criticize compensation packages, however, it kind of looks like these guys don’t understand how to evaluate an executive comp package, and they do a poor job of hiring their own managers.

https://apnews.com/article/73d743eb81eb441db0bb784b6e746536

www.ai-cio.com/news/new-calpers-cio-see-2-4-million-payout/

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FWIW, I just sent my thoughts on this to CALPERS.

www.calpers.ca.gov/page/contact

So Calpers thinks a great job is 8.4% whereas an index fund I believe returned almost double that number? Meanwhile they are apoplectic about a guy receiving $16 million that created $50 billion of value, furthermore, according to the above link, their last few executives have been in prison and have lied about something as basic as a college degree. Glass houses. One reason maybe Calpers has so much news play  is  they are part of a union and are taking on the "evil capitalists. "

 

"fund would have to achieve compound annual growth rate returns of 8.4% over five years for the CIO to reach the maximum $2.4 million."