Is Coke a leader in this? Absolutely. |
It's a good thing. I view shareholder activism that's designed to increase shareholder value long term as positive. |
It's a novel idea. Where it's unique is that if directors don't meet internally based targets, they get nothing. |
It's an excellent proposal. A lot of companies have such agreements informally, particularly for directors. |
It's entrepreneurial returns for managerial conduct. |
It's entrepreneurial returns for managerial conduct. Exxon was there long before Mr. Raymond was there and will be there long after he leaves. Yet he received Rockefeller returns without taking the Rockefeller risk. |
It's going to be fun to watch. But the real story took place long ago. |
Most institutions frown on dual-class stocks. |
No director anywhere from this point on would want to put themselves through this kind of ordeal that the directors at Disney just went through for eight years. Now boards realize they must be more independent and circumspect. |
Since severance packages generally are contractual, the issue is not the size of the severance package. The issue is why was the original employment contract structured to allow such a severance package? And that responsibility rests in the board. |
That would go an awful long way to restoring confidence, |
That's the debate. No one really knows. |
The big question is: Was this a failure of internal controls, or a failure of the board itself? How did something this large escape their notice? |
The board has to decide whether to sell. Thirty-five percent is a pretty big number. They have to decide if that's the right course or they may have a shareholder revolt. |
The fact that directors might go without pay is meaningful. It shows, on the part of the directors, confidence that the company has a good future. |