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Ragnar...

 

you are not the only one. Although I am not happy with what has transpired with Biglari, I am not ready to throw in the towel. I think if his compensation can be modified I probably would not be opposed to it in principle. For example, I believe that the average ROE for American corporations is probably around 10%, and probably higher for a successful fast food restaurant chain. But lets use 10%. If Biglari agrees to increase the hurdle from 5% to 10%, and adjusts for share issuance, share repurchases, and other factors that would be unrelated to his performance, I would seriously consider his proposal. Why??  First, I believe he is a superior capital allocator. Secondly, I would rather have a CEO whose is incentive compensation is totally tied to adjusted book value, then one that is tied to annual cash bonus, stock options, restricted stock, benefits and perks, etc (Pick your "Poison"). The idea being that if BV goes up the stock price eventually follows. I for one am not concerned that the arrangement could make him very wealthy in a relatively short period of time because if he gets wealthy, I get wealthy as well.  

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