Subject: Re: OT: Biglari Holdings (BH)
A lot of time has passed since Sardar pushed through his pay package. A shareholder coming to the company today knows the deal (or should). Sardar will be paid above his $900k salary for performance only. There are zero equity issuances or stock options...

One might argue that his hedge-fund-like compensation scheme is considerably worse than his having been granted a big pile of stock options. It is evergreen, ratcheting away a huge chunk of all future gains, over and over and over. It's a bit like a pre-contracted fresh set of options guaranteed every year forever.

If (if) he doesn't do anything like that again, then yes, it's rather like simply buying into a high fee hedge fund with your eyes open. But the future is not yet written, so that may be uncertain. Remember the story of the scorpion and the frog : )

I haven't read the details of how he happened to sell the BC "business" to BH for $4.2m and then buy it back again for $1.7m. Nice work if you can get it! (Business in quotes because I kinda gathered the activity of the BC business was to do his day job of allocating capital??). At least it's simpler to understand than the management comp at Brookfield.

Jim