Lawrence Cunningham on shareholder proposals:
like other great American companies, Berkshire is a magnet for controversial shareholder proposals. Too often, these proposals have degenerated into distracting rituals rather than opportunities for real engagement on corporate topics.
This year is no exception, with Berkshire hosting copycat votes on contentious matters from greenhouse gas emissions to workforce diversity that will certainly fail. The doozie this year, however, is a proposal before shareholders at many companies to split the jobs of chairman and CEO — in Berkshire’s case, effectively firing Warren Buffett.
Corporate gadflies roam from company to company merely repeating the same nostrums. They present themselves as knowing which arbitrary rule is best for all companies and shareholders. The practice of ignoring company specifics induces boards to deliver the same rote response the proposal deserves.
https://www.marketwatch.com/story/dump-buffett-as-berkshires…