Warren Buffett is to step down from the board of Coca-Cola after 17 years. Coca-Cola said the decision was a consequence of increased demands on Mr Buffett's time resulting from acquisitions by Berkshire Hathaway, his investment company.
The soft-drinks company said Mr Buffett intended to retain Berkshire Hathaway's 8 per cent stake in Coke.
Neville Isdell, Coke's chief executive, paid tribute to Mr Buffett's "wise and sage counsel" and Mr Buffett praised Mr Isdell's leadership.
But his departure, together with Pedro Reinhard, former chief financial officer of Dow Chemical, appeared to signal the reshaping of a board criticised by some investors for meddling in management and resisting change. Mr Buffett (75) has long been viewed as one of Coca-Cola's most influential and occasionally controversial directors, taking a central role in much of the drama that has surrounded the company over recent years.
He is widely believed to have led boardroom opposition to the company's proposed takeover of Quaker Oats in 2000, arguing that the $16 billion (€13.4 billion) price was too steep.
The veto undermined Doug Daft, then chief executive, who recommended the deal, and allowed PepsiCo, Coke's rival, to snatch an asset that has since become one of the best performing parts of its business.
Nearly 17 per cent of Coca-Cola shareholders withheld support for Mr Buffett's re-election as director last year, compared with support of 97 per cent or more for other directors seeking re-election.
Corporate governance activists opposed his re-election, complaining that ties between Coca-Cola and companies owned by Berkshire Hathaway created a conflict of interest.
"Leaving Coca-Cola is difficult. It has been a privilege to serve on the board of this wonderful company," said Mr Buffett. "Under Neville Isdell's leadership, the company is implementing the right strategy to create value for its shareowners and realise the potential of the world's greatest brand."
The company said it had no plans to fill the board seats vacated by Mr Buffett and Mr Reinhard.
