One Year Ago Today – The Meeting

5/22 SHAREHOLDER meeting — most viewed post on blog by far

Of course the video is much better

Many things have changed over the past year.  Executive comp is higher.  The size of the C-suite is larger.  Legal and administrative costs are up.  And N677J’s wheels are up (and down).

Three things have not changed.  The share count outstanding remains constant at 7,756,156.  Execs and Trustees still own only 1600 shares among the entire group.  And the number of Trustees remains 2.

Shareholders remain underrepresented, management/shareholder incentives remain unaligned, and the capital allocation tool that TPL is famous for (buybacks) remains idle.

All the roadshows in the world don’t change the fact that this is still a governance nightmare.


7 thoughts on “One Year Ago Today – The Meeting

  1. Fair points. That’s essentially what motivated me to sell my shares, not because I don’t see value, but because there’s less relative value than a year ago compared to other opportunities and governance was essentially defenestrated from the trust. Might come back later, will keep following closely. See y’all soon.

    Liked by 1 person

  2. Yup. I sold too. When the thesis changes, and it really did, it’s time to reconsider.

    The red flag for me has always been Cook. Neither side should have allowed him anywhere near this.

    Liked by 1 person

  3. I’m still holding. The assets have value. I still have yet to see what happens. I’m putting a lot of trust into HK and they keep adding. Fingers crossed. Yes management or lack there of, sucks.

    Liked by 1 person

  4. Nothing has changed with the structure, the excesses and lack of strategic direction. What has changed is their business has gotten worst.

    Liked by 1 person

  5. So true. It is amazing how little has changed. As shareholders we are so hungry for a management that truly represents the shareholders we are all thinking they will change. In reality management and the trustees have just stonewalled the activists.
    It will take a 75 percent vote of shareholders to replace them

    Liked by 1 person

  6. The current governance model Is impossible to reform as long as TPL is a trust. HK suggests its going to take until Q3 for a conversion to a C-Corp. I am willing to wait and bought more when it was on sale in March and April.

    In the current environment any nominal financial instrument will continue to be eroded by taxes and inflation in real terms. The growth in government debt at rates near zero has been phenomenal, and the supply of new debt seems infinite. Owning hard assets with no debt that cannot be printed like TPL seems to be a good alternative strategy.

    Agree it’s unacceptable the lack of share ownership by insiders and the failure of TPL to buy back shares during this market uncertainty. HK has been playing the long game, and both their holding time and cleverness exceeds mine. Still think its a reasonable outcome all current trustees will be replaced and a more shareholder centric world will result from the conversion. They clearly won’t survive post C-corp conversion when shareholders are able to actually vote for directors,

    Liked by 1 person

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