How I Voted My 2007 Diageo Shareholder Proxy Written By: David Neubert 2007-10-02 17:14:19 Diageo PLC (DEO ADR: $89.37) has a staggered board which protects management and the board from being accountable to shareholders by only allowing a few board members to be elected each year. That way it takes a few years to change a shareholder unfriendly board. Usually, managements that are afraid of their shareholders do this. As I do with all staggered boards, I voted against all three board members up for re-election this time. The three board members who are part of the staggered board up for election this year are: Ms. M Lilja, Mr. NC Rose, and Mr. PA Walker.
There are several other management sponsored resolutions about which I did not feel strongly except for one:
I voted against a management sponsored resolution titled: "Authority to make political donations". Quality companies focus on improving their products and better marketing, not on begging government for handouts. I don't want my company giving money out to corrupt politicians (in a legal manner of course), i would rather they either send the money to shareholders.
Sadly, Diageo has no shareholder sponsored resolutions.
Disclosure and Confessions: I own Diageo (DEO $89.37). It has performed well for me but now trades at the upper end of it's PE ratio and the ADR has gained greatly from drop in the U.S.. I am considering it for a sale in the near future if the price rises any more.
I am a fan of Diageo's products especially Guinness Stout and Harp Lager. If I must drink tequila, I think their Don Julio brand is just about the best one you can drink. I'm not much of a whiskey or other spirits drinker.
Some people will not own shares in alcohol companies because they believe them to be sin stocks. I do not believe this is the case for Alcohol companies as I am an enthusiastic consumer.
Personally, and for my net worth, I'm disappointed that Lehman (LEH, LEHPQ - $0.30) didn't get rescued. As an ex-employee and shareholder I would have liked some of the public money Ms. Roberts mentions being thrown around for Lehman. It was the last place I worked and its collapse hit me hard.
How the Lehman Collapse Made Me Thankful - Part 2 Written By: David Neubert 2008-09-19 17:24:02 This is a reposting of an article from earlier today including a tragedy that gave me true perspective (the humble perspective is at the end):
Personally, and for my net worth, I'm disappointed that Lehman (LEH, LEHPQ - $0.30) didn't get rescued. As an ex-employee and shareholder I would have liked some of the public money Ms. Roberts mentions being thrown around for Lehman. It was the last place I worked and hit me hard. But that is selfish (like most finance people rescued care of the public coffers).
How to Murder a CEO Written By: David Neubert 2008-09-23 14:50:09
I couldn't resist the violent title. A mob of fired workers in India killed the local CEO of Italian Manufacturer Graziano Transmissioni. Now, I am totally against death as punishment in any circumstance, and this event will likely hurt the willingness of foreign companies to locate manufacturing in India, but the punishment is ironic given the number of layoffs on Wall Street and their superior means of enacting revenge on their bosses these days. I wonder how many millionaire bankers and insurance executives have fantasized about the route these frustrated workers took.
HSBC Launches Climate Change Index Written By: David Neubert 2007-09-26 11:07:34 Seems like every financial institution is getting on climate change and socially responsible investing. Somehow I think they are a bit ahead of most investors. I'd be much more interested in data about companies that see themselves as responsible for the planet and how they perform financially versus companies that exist only to reward their executives.
The HSBC Index tracks 300 companies worldwide that make money from fighting climate change, such as wind turbine and solar panel manufacturers and biofuel companies.
I voted against a management sponsored resolution titled: "Authority to make political donations". Quality companies focus on improving their products and better marketing, not on begging government for handouts. I don't want my company giving money out to corrupt politicians (in a legal manner of course), i would rather they either send the money to shareholders.
The HSBC Index tracks 300 companies worldwide that make money from fighting climate change, such as wind turbine and solar panel manufacturers and biofuel companies.