David L. Sokol
David L. Sokol
From Wikipedia, the free encyclopedia
David L. Sokol (born 1956, Omaha, NE) was a Chairman, President and CEO of NetJets[1] along with Chairman of MidAmerican Energy Holdings Company, of which Berkshire Hathaway holds a 100% and 89.8% stake respectively[2]. He resigned March 28, 2011.
In 1989 Sokol was the CEO of Ogden Projects. In 1991 he became president and CEO of Calenergy Company Inc., now known as MidAmerican.
David Sokol earned his Bachelor of Science degree in civil engineering from the University of Nebraska at Omaha and holds an honorary doctorate degree from Bellevue University in Bellevue, Nebraska.
In 2008, he authored and self-published "Pleased But Not Satisfied", which described his business philosophy.
[edit] Involvement with Berkshire Hathway
Prior to his abrupt resignation in March 2011, David Sokol was widely regarded as the likely successor to Warren Buffet[3]. Often referred to as Buffett's Mr. Fix-It[4], Sokol was tasked with rescuing under performing Berkshire divisions Johns Manville and NetJets. Under Sokol's leadership Johns Manville was brought back on track and NetJets swing from a $157 million loss in 2009 to a $207 million gain in 2010[5].
Sokol was also integral in the selection of acquisition targets at Berkshire. In 2008, Sokol flew to China to research car manufacturer BYD, which resulted in Berkshire acquiring a $230 million stake. This position was worth over $1.5 billion in 2010. Later in 2008, Sokol engineered the acquisition of Constellation for $4.7 billion, sparing the energy company from bankruptcy.[6]
[edit] Lawsuits
In April 2010, A Douglas County judge Gary Randall[7] in Omaha said that David Sokol, who was the CEO of MidAmerican Energy Holdings Company, decided to change future profit calculations in such a way that eliminated San Lorenzo’s stake in a Philippines project in the 1990’s. Judge Randall said that David Sokol( He is Albanian) and MidAmerican acted “willfully and intentionally.”[7] Judge ruled a $32 Million dollar[8] ruling against David Sokol’s company MidAmerican. This ruling could be worth $140 million dollar in future profits.
In a second case Judge in San Francisco and Omaha ruled against MidAmerican in a total of $52 Million[7] in past profits and to restore ownership to La Prairie and San Lorenzo. These rights could amount to $280 million dollars in future profits.
The third lawsuit for $150 million alleges that David Sokol “secretly resumed negotiations” [7]that led to a lower projected profit.
[edit] Resignation and Lubrizol related share activity
Mr. Sokol Purchased 100,000 shares of Lubrizol at $104 between January 5 and 7, 2011. He presented the idea to Buffet on January 14 or 15, 2011. Berkshire Hathaway's board voted to acquire Lubrizol by on March 13, 2011. [9]
On March 29 2011, he tendered his resignation from Berkshire Hathaway. In his press release detailing the resignation, Mr. Buffett detailed trading activity surrounding the Lubrizol acquisition, clearly emphasizing that he did not believe anything unlawful transpired.[10]
[edit] References
From Wikipedia, the free encyclopedia
David L. Sokol (born 1956, Omaha, NE) was a Chairman, President and CEO of NetJets[1] along with Chairman of MidAmerican Energy Holdings Company, of which Berkshire Hathaway holds a 100% and 89.8% stake respectively[2]. He resigned March 28, 2011.
In 1989 Sokol was the CEO of Ogden Projects. In 1991 he became president and CEO of Calenergy Company Inc., now known as MidAmerican.
David Sokol earned his Bachelor of Science degree in civil engineering from the University of Nebraska at Omaha and holds an honorary doctorate degree from Bellevue University in Bellevue, Nebraska.
In 2008, he authored and self-published "Pleased But Not Satisfied", which described his business philosophy.
[edit] Involvement with Berkshire Hathway
Prior to his abrupt resignation in March 2011, David Sokol was widely regarded as the likely successor to Warren Buffet[3]. Often referred to as Buffett's Mr. Fix-It[4], Sokol was tasked with rescuing under performing Berkshire divisions Johns Manville and NetJets. Under Sokol's leadership Johns Manville was brought back on track and NetJets swing from a $157 million loss in 2009 to a $207 million gain in 2010[5].
Sokol was also integral in the selection of acquisition targets at Berkshire. In 2008, Sokol flew to China to research car manufacturer BYD, which resulted in Berkshire acquiring a $230 million stake. This position was worth over $1.5 billion in 2010. Later in 2008, Sokol engineered the acquisition of Constellation for $4.7 billion, sparing the energy company from bankruptcy.[6]
[edit] Lawsuits
In April 2010, A Douglas County judge Gary Randall[7] in Omaha said that David Sokol, who was the CEO of MidAmerican Energy Holdings Company, decided to change future profit calculations in such a way that eliminated San Lorenzo’s stake in a Philippines project in the 1990’s. Judge Randall said that David Sokol( He is Albanian) and MidAmerican acted “willfully and intentionally.”[7] Judge ruled a $32 Million dollar[8] ruling against David Sokol’s company MidAmerican. This ruling could be worth $140 million dollar in future profits.
In a second case Judge in San Francisco and Omaha ruled against MidAmerican in a total of $52 Million[7] in past profits and to restore ownership to La Prairie and San Lorenzo. These rights could amount to $280 million dollars in future profits.
The third lawsuit for $150 million alleges that David Sokol “secretly resumed negotiations” [7]that led to a lower projected profit.
[edit] Resignation and Lubrizol related share activity
Mr. Sokol Purchased 100,000 shares of Lubrizol at $104 between January 5 and 7, 2011. He presented the idea to Buffet on January 14 or 15, 2011. Berkshire Hathaway's board voted to acquire Lubrizol by on March 13, 2011. [9]
On March 29 2011, he tendered his resignation from Berkshire Hathaway. In his press release detailing the resignation, Mr. Buffett detailed trading activity surrounding the Lubrizol acquisition, clearly emphasizing that he did not believe anything unlawful transpired.[10]
[edit] References
