In an interview with CNBC yesterday, Warren Buffett got questioned about the wisdom of Coca-Cola’s compensation that could potentially dilute shareholders to the tune of $13 billion over the coming 4-5 year stretch:
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Buffett, whose company is the beverage maker’s largest shareholder, called the plan “excessive” in an interview on a news channel after it was approved at the company’s annual meeting. But he said Berkshire Hathaway abstained from voting against the pay plan because he didn’t want to express disapproval of the company’s management.
Buffett also noted during the interview how difficult it can be to sit on company boards and oppose a pay plan. His son, Howard Buffett, serves on Coke’s board and supported the pay plan. Buffett said that he has never heard anyone speak out against a compensation committee’s plan in 55 years of serving on company boards.
During the CNBC interview, Buffett was asked why