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Do you think the BH pay package will pass as is presently proposed?


Do you think the BH pay package will pass as is presently proposed?  

72 members have voted

  1. 1. Do you think the BH pay package will pass as is presently proposed?

    • Yes: Overwhelmingly
    • Yes: Narrowly
    • No: Overwhelmingly
    • No: Narrowly
    • Too close to call
    • Pay package will be changed before vote


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Try to keep personal feelings on the matter aside, as most everyone on here will probably be voting against it (if they are still shareholders). Just for fun, let us vote on what we think will actually happen.

 

If you don't already know, here is the 8K with the pay package in it:

 

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7219296-1239-15227&type=sect&dcn=0000921895-10-000667

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I think the vote will come down to a contest between the hardcore Biglari loyalists (including Biglari himself) and everyone else.  I don't think I've heard anyone really defending the package, and Gabelli has voted against it, so I'd expect virtually all retail and institutional investors to vote against it.  Whether or not Biglari can buy up enough stock to influence the vote is probably the swing factor.

 

I personally would be surprised if even his insider colleagues would go along with this since he's taking money out of their pockets too, but I don't know to what extent the cult of personality has taken hold.

 

Biglari has been buying up the stock through his funds, and if he gets creative, he could probably keep buying, by using the cash at BH and borrowing.  He couldn't buy 50% but maybe 20-30% which might be enough.

 

Even more than the numerous other things that Biglari has done, the fact that he is trying to jam this down the throats of shareholders, by using all of the capital at his disposal that should be employed pursuing other investments, demonstrates the complete divergence between his interests and those of shareholders.  If this does pass, I would expect the stock to fall and languish.  If it does not pass, the stock might pop, but then I think everyone should worry about what his next idea would be.

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