Jump to content

Oak Street Against BH Incentive Agreement


Recommended Posts

Anyone think Biglari will be outvoted?


CHICAGO--(BUSINESS WIRE)--As a 2.5% shareholder of Biglari Holdings (BH), formerly The Steak N Shake Company, Oak Street announced today that it intends to vote AGAINST approval of the Incentive Bonus Agreement between Biglari Holdings and Mr. Biglari, the company’s CEO, at the upcoming special shareholder meeting scheduled for August 24, 2010.


Oak Street opposes this attempt to redistribute shareholder wealth to Mr. Biglari. Oak Street is concerned that the proposed incentive compensation scheme fails to align Mr. Biglari’s interests with the interests of company shareholders. Book value increases are not always tantamount to shareholder value creation. We believe shareholders would prefer that Mr. Biglari’s remuneration be directly tied to share price performance in order to ensure that shareholders and Mr. Biglari benefit in concert.


An Oak Street spokesman stated “This unusual compensation scheme creates potential conflicts whereby Mr. Biglari could enrich himself at the expense of other shareholders. We are concerned that Mr. Biglari and the board are not acting in the best interest of all shareholders and we condemn the Board for this potential governance failure. We believe Mr. Biglari’s proposal has resulted in a significant loss of shareholder wealth already, as evidenced by the $100 share price decline since the compensation scheme was proposed on April 30, 2010. We intend to rigorously defend our interests as shareholders.”

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...