Nice rundown on the proxy here. Can’t help agree with the author’s thoughts on #4.
Proposal 4: It’s a Trap!
The fourth proposal seems great as the current share price is close to $1,800 per share and several investors believe that a stock split would help generate additional interest in the company. The board points out that more shares are needed to execute a split, ergo, please approve more shares. However, where it gets dangerous for shareholders is that they also say that the additional shares could be used as consideration for acquisitions, and as grants to employees. Regarding acquisitions, the long-held investment thesis in TPL is that it was a liquidating trust. No capital was necessary to grow the royalty businesses and all excess cash flow was to be used to pay dividends and / or retire shares. Furthermore, the company has a share buyback program in place, why go the other way? Last comment on acquisitions, management does not have the trust of the shareholders to deploy large amounts of capital via acquisitions. Regarding the stock grants, there are enough issues with management compensation to compound the issue by allowing the company another piggy bank to extract from.
Would also wholeheartedly agree with the sentiment below. Given the size and pay of this board, waiting a year for action is a joke.
The meeting is November 16, 2022. Advice I would give to the board, is that if any of the non-binding proposals pass, do not let another year go by before having a binding vote, such as was done with the proposal to declassify the board. Have a special meeting as soon as possible so the shareholders’ wishes can be implemented.