IBJNews

Biglari's revised incentive package approved by shareholders

Back to TopCommentsE-mailPrintBookmark and Share

Shareholders for Biglari Holdings Inc., Steak n Shake’s parent company, on Friday approved a revised, scaled-back incentive plan for Chairman and CEO Sardar Biglari.

The revised pay package pays Biglari the equivalent of 25 percent of the company’s annual growth in adjusted book value above a 6-percent threshold, up from 5 percent in the earlier version. The new deal also caps Biglari’s annual incentive pay at $10 million, but still requires him to spend at least 30 percent of his annual incentive payment buying Biglari Holdings shares in the open market.

A previously proposed incentive package for Biglari was criticized because it created the potential for Biglari to profit at shareholders’ expense. About 82 percent of the voting shares on Friday favored the revised proposal.

Biglari said there was “considerable misinformation” among shareholders about the earlier incentive agreement. Still, he agreed to revise the incentive package.

San Antonio-based Biglari Holdings Inc. canceled its previous shareholders meeting, scheduled for Aug. 24, to “correct misinformation,” answer questions from shareholders and analysts, and incorporate suggestions into an incentive package for Biglari.

Biglari Holdings cited a number of reasons for redesigning Biglari’s compensation, including his increased duties as a result of its transformation from strictly a restaurant company into a diversified holding company.

A September filing with the Securities and Exchange Commission says the company's annual goal for book-value growth is 10 percent. Based on a book value of $300 million, if the company achieved that 10 percent target, Biglari would earn an incentive bonus of $3 million. That is in addition to an annual salary of $900,000.

Friday’s shareholders meeting was the first held in San Antonio since Biglari moved the Steak n Shake parent’s headquarters there from Indianapolis earlier this year.

Biglari Holdings' subsidiaries are Steak n Shake, Western Sizzlin and Biglari Capital Corp.

ADVERTISEMENT

  • Talk about greedy
    This is exactly the kind of greed that got our economy in so much trouble. Go to Texas and see if we care. Every Hoosier should boycott Steak n' Shake from now on -- why line the pockets of another Carl Icahn, especially when he thumbs his nose at one of the states that helped give him the opportunity to earn $3 million+ in annual bonuses??? DO NOT EAT AT STEAK N' SHAKE. Period. I hope every single IBJ reader will seriously consider this suggestion.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. A Tilted Kilt at a water park themed hotel? Who planned that one? I guess the Dad's need something to do while the kids are on the water slides.

  2. Don't come down on the fair for offering drinks. This is a craft and certainly one that belongs in agriculture due to ingredients. And for those worrying about how much you can drink. I'm sure it's more to do with liability than anything else. They don't want people suing for being over served. If you want a buzz, do a little pre-drinking before you go.

  3. I don't drink but go into this "controlled area" so my friend can drink. They have their 3 drink limit and then I give my friend my 3 drink limit. How is the fair going to control this very likely situation????

  4. I feel the conditions of the alcohol sales are a bit heavy handed, but you need to realize this is the first year in quite some time that beer & wine will be sold at the fair. They're starting off slowly to get a gauge on how it will perform this year - I would assume if everything goes fine that they relax some of the limits in the next year or couple of years. That said, I think requiring the consumption of alcohol to only occur in the beer tent is a bit much. That is going to be an awkward situation for those with minors - "Honey, I'm getting a beer... Ok, sure go ahead... Alright see you in just a min- half an hour."

  5. This might be an effort on the part of the State Fair Board to manage the risk until they get a better feel for it. However, the blanket notion that alcohol should not be served at "family oriented" events is perhaps an oversimplification. and not too realistic. For 15 years, I was a volunteer at the Indianapolis Air Show, which was as family oriented an event as it gets. We sold beer donated by Monarch Beverage Company and served by licensed and trained employees of United Package Liquors who were unpaid volunteers. And where did that money go? To central Indiana children's charities, including Riley Hospital for Children! It's all about managing the risk.

ADVERTISEMENT