Buffett Holds Humdrum Shareholder Meeting; JPM Board Directors Under Fire

Receiving Wide Coverage ...

Buffett Holds (Uneventful) Shareholder Meeting: Many members of the media spent the weekend with Warren Buffett, but the news coming out of Berkshire Hathaway's annual shareholder meeting — per articles in both the Times and the Journal — is that the Oracle of Omaha managed to avoid making any "big news." Buffett did engage in a discussion with "bear" Douglas Kass, who was invited to ask questions since he is "betting that the price of Berkshire shares will drop." But Kass "didn't draw much blood" and, overall, "Buffett largely reiterated positions he has stated publicly before — yes, he has decided on a successor, but, no, he is not saying who it is," notes the Journal. Perhaps those hoping for more details and/or insights can try following the Berkshire Hathaway chairman and CEO on Twitter.

Wall Street Journal

Some big-name investors are rolling back on bearish calls concerning U.S. Treasuries. These reversals "highlight the perils of investing in a slow-growth, low-interest-rate world and underscore the need to approach the $11.4 trillion U.S. Treasury market opportunistically."

Financial Times

This op-ed by Patrick Jenkins argues for performance-based pensions. "If a chunk of bonuses were turned into variable clawback-able pension contributions to create performance-related ultra-long term incentives, banks might yet turn a blinkered eurocrat policy into a sensible pay reform," Jenkins writes. You can find more on executive compensation in American Banker's second annual special report on the topic.

New York Times

Institutional Shareholder Services, a shareholder advisory firm, is urging JPMorgan Chase shareholders not to vote for three directors, David Cote, James Crown and Ellen Futter, on the bank board's risk policy committee. Per the firm's report, "[JPM's] board is in need of refreshment and it should begin searching for seasoned directors with financial and risk expertise." ISS also supported the proposal to split Jamie Dimon's dual role of chairman and CEO. Dealbook explains ISS "does not actually vote shares, but many investors follow its recommendations, or use them as a basis on how to vote." The bank issued a statement over the weekend saying that it disagreed with the firm's assessment and that it supports the re-election of its board members. A separate Dealbook article, published prior to the one on ISS's report, notes that shareholder CtW Investment Group, which represents union pension funds, plans to vote against three directors on the risk policy committee (though the article goes on to name drop four — Cote, Crown, Futter and Thomas Flynn), and Laban P. Jackson, chairman of the audit committee. The group voted against the directors last year. It's not yet known how other shareholders will vote. "Failing to receive a majority of shareholder votes does not necessitate a resignation, but such a vote might prompt a director to leave," the article notes. In any event, mark your calendars: JPM's shareholder meeting is scheduled to take place on May 21.