Does Facebook Inc (FB) Want to Know If You “Like” Its Executive Pay?

On the other hand, there is some merit to the argument that shareholders with a short-term mentality can push management to do things that compromise long-term returns. This is one reason I actually embrace the dual-class voting structure at Berkshire Hathaway Inc. (NYSE:BRK.B) — especially given that Berkshire doesn’t give insiders exclusive access to the shares with the most voting power. Also, Warren Buffett doesn’t just inspire confidence with his track record of building strong gains for investors. His notorious candor with his investors and his willingness to solicit public  challenges to his leadership and to offer thoughtful answers to those challenges give me confidence in the company’s future performance, even though my B shares don’t give me the same voting power as those with A shares.

When evaluating potential investments with a dual-class voting structure, I urge investors to pay particular attention to management’s attitude toward shareholders. If management ignores dissenting views and tries to limit opportunities to present them (as Facebook has done by limiting the “say on pay” vote to once every three years), I believe investors should be reluctant to invest.

The article Does Facebook Want to Know If You “Like” Its Executive Pay? originally appeared on Fool.com and is written by M. Joy Hayes, Ph.D.

Motley Fool contributor M. Joy Hayes, Ph.D. is the principal at ethics consulting firm Courageous Ethics. She owns shares of Berkshire Hathaway. Follow her @JoyofEthics on Twitter. The Motley Fool recommends and owns shares of Berkshire Hathaway Inc. (NYSE:BRK.B), Facebook Inc (NASDAQ:FB), and Google.

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