Berkshire's Buffett: Coke compensation plan makes 'great sense'-CNBC

Thu Oct 2, 2014 9:08am EDT
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NEW YORK Oct 2 (Reuters) - Warren Buffett, the chairman and chief executive officer of conglomerate Berkshire Hathaway Inc , praised Coca-Cola's altered executive compensation plan on Thursday.

"I think the new plan makes great, great, sense," Buffett told cable business channel CNBC, referring to Coca-Cola's new guidelines to limit its executive compensation plan, starting next year.

Buffett, whose Berkshire Hathaway Inc holds 9.1 percent of Coca-Cola and is the company's biggest shareholder, said he felt as good about his investment in Coca-Cola as he ever has.

Buffett said Burger King Worldwide Inc's $11.5 billion purchase of Tim Hortons Inc was not a tax-motivated deal.

Investors and tax experts have said the main reason for Burger King to move its domicile to Canada, its largest market, is to avoid having to pay double taxation on profits earned abroad. The company would probably be subject to double taxation if it remained in the United States.

Buffett also said his company's purchase of auto dealership group Van Tuyl Group, which was announced Thursday, was an all-cash deal. He said Berkshire would likely buy more dealerships.

Buffett also said if he were invested in asset manager Pimco, he would not change his investment based on the departure of former Chief Investment Officer Bill Gross, which was announced last week. (Reporting by Sam Forgione; Editing by Jeffrey Benkoe)