(Reuters) – Berkshire Hathaway Inc reversed course on Friday, telling an activist group that it could remotely present a shareholder proposal ahead of the company’s annual meeting on May 1, in line with the US securities regulator’s renewed guidelines.
Warren Buffett’s insurance and investment company traditionally draws thousands to its extravagant annual meeting in Omaha, but, like many top U.S. companies during the coronavirus pandemic, investors had asked to log in to the meeting remotely rather than attend in person.
However, the shift to online has hindered many activist investor groups, whose shareholder resolutions often spice up meetings. Some have been muted through the technology or told that despite the health risks, they could only present resolutions in person.
Such was the case in Berkshire for As You Sow of Berkeley, California, which filed a measure calling for the company’s subsidiaries to report on diversity and inclusion efforts, and was told it was a Representative to Los Angeles, where some directors and staff would gather for the livestream webcast.
When asked about the situation on Friday, Marc Hamburg, Berkshire’s Chief Financial Officer, told Reuters via email:
“We would have preferred As You Sow to present their proposal at the location of the shareholders meeting in Los Angeles. However, we will provide As You Sow the opportunity to make a recording that will be played during the meeting as a means of presenting their shareholder proposal. “
As You Sow welcomed the decision. The organization “is not prepared to endanger other people’s health, so we are relieved that the company has changed course,” President Danielle Fugere told Reuters.
When Berkshire Hathaway contacted the group, it quoted new instructions from the U.S. Securities and Exchange Commission, As You Sow said.
As You Sow was among a group of activists and investors who asked the SEC on April 5 to expand last year’s guidelines to allow for the virtual presentation of proposals that a number of companies appeared to ban this year, in time for the shareholder in the spring of 2021 meeting season.
“From a pandemic security standpoint, it is not time yet for advocates to appear in person,” the letter said.
In a statement posted on its website on Friday, the SEC said that in light of COVID concerns, companies were encouraged to “allow shareholder advocates or their representatives the opportunity to present their proposals in alternative ways, such as by telephone” during the 2021 season. .
The agency also said advocates unable to travel to meetings would have good reason to resubmit their proposals later.
Hamburg did not respond to questions about how it would deal with other shareholder groups.
Reporting by Ross Kerber; Editing by Sonya Hepinstall