This guy is a great businessman and investor.
Buffett to step down from Coke board <!-- END HEADLINE -->
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NEW YORK (Reuters) - Billionaire investor Warren Buffett will step down as a director of Coca-Cola Co. (NYSE:KO - news) this year because of time constraints after 17 years on the board of the world's biggest soft-drink company.
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Buffett, 75, told Coca-Cola that he did not plan to seek reelection to the board at the upcoming annual shareholders meeting, the company said in a news release.
J. Pedro Reinhard, former chief financial officer of Dow Chemical Co. (NYSE:DOW - news), also said he would step down from the board for the same reason, according to Coke.
Buffett, who has been on the board since 1989, cited increased demands on his time due to Berkshire Hathaway Inc.'s (NYSE:BRKA - news) acquisitions of companies, Coca-Cola said.
Omaha, Nebraska-based Berkshire Hathaway, the investment company controlled by Buffett, is Coke's biggest stockholder with an 8.3 percent stake, or 200 million shares.
Berkshire Hathaway will maintain its Coca-Cola share holdings, the soft-drink maker said.
The stock's value has risen more than sixfold during Buffett's time on the board.
Buffett, who in his 1991 letter to shareholders said that he drinks five cans of Cherry Coke a day, said in the release that leaving Coca-Cola was difficult.
"Under Neville Isdell's leadership," he said, "the Company is implementing the right strategy to create value for its shareowners and realize the potential of the world's greatest brand."
At a December investor conference, Coke, which is facing sluggish soft drink sales, announced a slew of innovations and packaging along with a new marketing slogan that Chief Executive Neville Isdell said would help drive volume and profit growth.
Still, shares of Coca-Cola have fallen 20 percent since the 62-year-old Irishman succeeded Doug Daft in June 2004 and are 54 percent off their lifetime high of $88.94 set in July 1998. By contrast, rival PepsiCo Inc.'s (NYSE:PEP - news) stock has soared 46 percent over the same period.
Buffett, an active Coca-Cola board member, was influential in the company backing out on its plans to buy Quaker Oats Co. and its crown jewel, the Gatorade sports drink, in 2000. Rival PepsiCo Inc. (PEP.N) eventually acquired Quaker Oats, which has been key to the No. 2 soft drink maker's revenue and earnings growth.
Buffett also was a driving force behind the resignation of former Coke Chief Executive M. Douglas Ivester in 1999, according to published reports at the time.
While a heavyweight on the Coke board, Buffett did face opposition in 2004 when the influential Institutional Shareholder Services advisory service
called on stockholders to withhold their votes for his reelection that year. It cited the purported conflict from the purchases of Coke products by two Berkshire units, food distributor McLane Co. and Dairy Queen.
The effort to oust Buffett failed. Many had seen the move as odd, especially in light of Buffett's reputation for promoting shareholder causes and his calls over decades for boardroom reform.
Following Buffet and Reinhard's decision, three of Coke's 14 directors will not be standing for reelection this year.
Last November, another Coke director, Maria Elena Lagomasino, said she would not stand for reelection to the board following a request from her new employer, an affiliate of SunTrust Banks Inc. (NYSE:STI - news).
Shares of Coke were up 37 cents, or less than 1 percent, at $41.11.
Buffett to step down from Coke board <!-- END HEADLINE -->
<!-- BEGIN STORY BODY -->
NEW YORK (Reuters) - Billionaire investor Warren Buffett will step down as a director of Coca-Cola Co. (NYSE:KO - news) this year because of time constraints after 17 years on the board of the world's biggest soft-drink company.
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Buffett, 75, told Coca-Cola that he did not plan to seek reelection to the board at the upcoming annual shareholders meeting, the company said in a news release.
J. Pedro Reinhard, former chief financial officer of Dow Chemical Co. (NYSE:DOW - news), also said he would step down from the board for the same reason, according to Coke.
Buffett, who has been on the board since 1989, cited increased demands on his time due to Berkshire Hathaway Inc.'s (NYSE:BRKA - news) acquisitions of companies, Coca-Cola said.
Omaha, Nebraska-based Berkshire Hathaway, the investment company controlled by Buffett, is Coke's biggest stockholder with an 8.3 percent stake, or 200 million shares.
Berkshire Hathaway will maintain its Coca-Cola share holdings, the soft-drink maker said.
The stock's value has risen more than sixfold during Buffett's time on the board.
Buffett, who in his 1991 letter to shareholders said that he drinks five cans of Cherry Coke a day, said in the release that leaving Coca-Cola was difficult.
"Under Neville Isdell's leadership," he said, "the Company is implementing the right strategy to create value for its shareowners and realize the potential of the world's greatest brand."
At a December investor conference, Coke, which is facing sluggish soft drink sales, announced a slew of innovations and packaging along with a new marketing slogan that Chief Executive Neville Isdell said would help drive volume and profit growth.
Still, shares of Coca-Cola have fallen 20 percent since the 62-year-old Irishman succeeded Doug Daft in June 2004 and are 54 percent off their lifetime high of $88.94 set in July 1998. By contrast, rival PepsiCo Inc.'s (NYSE:PEP - news) stock has soared 46 percent over the same period.
Buffett, an active Coca-Cola board member, was influential in the company backing out on its plans to buy Quaker Oats Co. and its crown jewel, the Gatorade sports drink, in 2000. Rival PepsiCo Inc. (PEP.N) eventually acquired Quaker Oats, which has been key to the No. 2 soft drink maker's revenue and earnings growth.
Buffett also was a driving force behind the resignation of former Coke Chief Executive M. Douglas Ivester in 1999, according to published reports at the time.
While a heavyweight on the Coke board, Buffett did face opposition in 2004 when the influential Institutional Shareholder Services advisory service
called on stockholders to withhold their votes for his reelection that year. It cited the purported conflict from the purchases of Coke products by two Berkshire units, food distributor McLane Co. and Dairy Queen.
The effort to oust Buffett failed. Many had seen the move as odd, especially in light of Buffett's reputation for promoting shareholder causes and his calls over decades for boardroom reform.
Following Buffet and Reinhard's decision, three of Coke's 14 directors will not be standing for reelection this year.
Last November, another Coke director, Maria Elena Lagomasino, said she would not stand for reelection to the board following a request from her new employer, an affiliate of SunTrust Banks Inc. (NYSE:STI - news).
Shares of Coke were up 37 cents, or less than 1 percent, at $41.11.
