GG in response to the last post writes:
Per the most recent 10-K, one thing that HAS changed is that the trustees just seemed to have increased their paychecks from $2,000 per year to $104,000 per year. Egregious? No. But you should never have a scenario where the trustees are elected FOR LIFE and also in a position to vote their own salary increases….
Likewise, if the Trust is going to be doling out multi-millions in bonuses to executives, then there needs to be shareholder oversight into the people who make those decisions. Glover and Packer each took home a $1.8 million bonus. Totally ok from the perspective of increased income, but it’s problematic that shareholders do not have any say outside of the very-rare trustee votes (literally only when a trustee resigns or dies).
Much more important than who is being nominated to be a trustee, is the line from the sec filing “Such discussions may include (1) the conversion of TPL into a Delaware corporation subject to modern governance principles, as permitted by TPL’s declaration of trust”
Modern governance, and a real elected board that answers to shareholders would clearly be a step up from the current situation.
Three trustees with lifetime jobs does sound a bit narrow for modern times.
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Well stated! Fully agree and will support any change to the “trustee governance business as usual” model. Have always been impressed with the HK writing about TPL, so if they believe its time to have a change, its hard to disagree.
This isn’t 1888 anymore, and a corporate charter change after 130 years is very reasonable. In this world of Sarbanes Oxley the lack of transparency and outside oversight is amazing. And it might also be responsible for a discounting of the stock price by investors.
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