Tuesday, April 24, 2012

Sequoia Fund Slams Former Fannie CEO Over Run For Goldman Board Seat (GS)

I have been at the market for pretty much my entire adult life and never seen anything this harsh.
Good for Sequoia.
From American Banker:
The past is coming back to haunt former Fannie Mae chief executive James A. Johnson.

Goldman Sachs (GS) investors next month will decide whether to re-elect board member Johnson, who ran Fannie from 1991 to 1998. He is facing vocal opposition from a large mutual fund investor, which has cited Johnson's mortgage industry past as part of what it calls his presence "at the center of several egregious corporate governance debacles."

Robert D. Goldfarb and David M. Poppe, managers of the Sequoia Fund, wrote in a letter last week that clients should oppose Johnson because of his history at Fannie and as a director of United Healthcare and KB Home (KBH), whose executives were involved in the back-dating of stock options.

"We believe Mr. Johnson's history should disqualify him from service on the board of any public company," wrote the Sequoia managers, who held 1.4 million Goldman shares at the end of 2011. "This information has long been in the public record. Yet Mr. Johnson remains the chairman of the compensation committee at Goldman Sachs and at Target."...MORE