ISS Opposes Buffett’s Reelection at Coca-Cola

The reelection of billionaire investor Warren E. Buffett to Coca-Cola Co.’s board should be opposed by the company’s shareholders because his business ties pose a conflict, Institutional Shareholder Services, the biggest advisor to funds on proxy votes, said Monday.

“We maintain our position that Mr. Buffett shouldn’t serve on the audit committee due to his numerous transactional relationships with the company,” ISS said in a statement. Shareholders will vote on directors at Atlanta-based Coca-Cola’s annual meeting April 19.

Buffett, chairman of Berkshire Hathaway Inc. and a Coca-Cola director since 1989, was rejected for reelection by 16% of the soft drink maker’s shareholders last year after ISS made the same recommendation. Berkshire’s McLane Co. food distribution unit sold $170.2 million of Coca-Cola products last year, and its International Dairy Queen unit made $2.1 million in payments to the company.

“They are doing it by checklists, and I don’t believe in checklists,” Buffett said in an interview in May before the annual shareholder meeting of Berkshire Hathaway in Omaha. Sonya Soutus, a Coca-Cola spokeswoman, declined to comment.

Institutional Shareholder Services also recommended that shareholders approve a resolution calling for severance agreements to be submitted to shareholders for approval. Some investors say the company has paid excessive amounts to departing executives.

Coca Cola shares rose 9 cents to $41.47; Berkshire Hathaway’s Class A shares added $2,190 to $87,190. Both trade on the New York Stock Exchange.