Michael Larson
About Michael Larson
Michael Larson (born 1959) is an Independent Trustee of Western Asset Premier Bond Fund (WEA), serving since 2004. He is Chief Investment Officer for William H. Gates III, overseeing all non-Microsoft investments and the Bill & Melinda Gates Foundation Trust since 1994. He brings portfolio management expertise from decades as a professional investor and serves on several public company boards; education includes a BA in Economics from Claremont McKenna College and an MBA from the University of Chicago. Independence is affirmed under the 1940 Act; he is not an “interested person” of the Fund.
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Pan American Silver Corp. | Director | Nov 1999 – Dec 2010 | Board service during commodity cycles; investor perspective |
| AutoNation, Inc. | Director; Compensation Committee member | Not disclosed | Compensation oversight; governance input |
| Grupo Televisa, S.A.B. | Director | Not disclosed | Strategic oversight; media exposure |
| Western Asset/Claymore Inflation-Linked Securities & Income Fund; Inflation-Linked Opportunities & Income Fund | Chairman of Board of Trustees; Audit and Governance/Nominating Committees | Not disclosed | Fund governance and risk oversight |
| Claremont McKenna College | Trustee; Co-Chair of Investment Committees | Not disclosed | Endowment oversight; investment policy |
| Lakeside School | Chair of Investment Committee | Not disclosed | Investment oversight |
| University of Washington | Investment Committee member | Not disclosed | Investment oversight |
External Roles
| Company | Role | Committee Assignments | Director Since |
|---|---|---|---|
| Ecolab Inc. | Independent Director | Finance (Chair), Safety, Health & Environment | 2012 |
| Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) | Director | Not disclosed | 2011 |
| Republic Services, Inc. | Director | Not disclosed | 2009 |
| Western Asset Management closed-end and mutual funds | Trustee/Member (multiple series) | Not disclosed | 2004–present |
Board Governance
| Committee (WEA) | Member | Chair | FY 2024 Meetings Held |
|---|---|---|---|
| Audit Committee | Yes | No (Chair: Robert Abeles, Jr.) | 6 |
| Governance & Nominating Committee | Yes | No (Chair: Jaynie Miller Studenmund) | 3 |
| Executive & Contracts Committee | Yes | No (Chair: William E. B. Siart) | 2 |
| Investment & Performance Committee | Yes | No (Chair: Susan B. Kerley) | 5 |
- Board structure: Independent Chair (William E. B. Siart); Independent Trustees >75% of Board; committee chairs are Independent Trustees.
- Attendance: In FY 2024, the Board held 8 meetings; each Trustee attended at least 75% of Board and committee meetings on which they served.
- Independence: Larson is an Independent Trustee per the 1940 Act; only Olson and Trust are “interested persons.”
Fixed Compensation
| Metric | FY 2024 |
|---|---|
| Aggregate compensation from WEA ($) | $1,134 |
| Total compensation from WEA Fund Complex ($) | $350,000 |
| Pension/Retirement benefits accrued ($) | $0 |
| Estimated annual benefits upon retirement ($) | $0 |
- Structure: Independent Trustees receive an annual retainer plus fees for regular and special meetings; additional compensation applies to leadership roles (Chair positions) which Larson does not hold at WEA.
Performance Compensation
| Component | FY 2024 |
|---|---|
| Equity awards (RSUs/PSUs) | Not disclosed/none for Trustees; compensation is cash-based retainers/fees |
| Option awards | Not disclosed/none for Trustees |
| Performance metrics tied to compensation | Not applicable for Trustees |
| Clawback/Change-in-control/Severance | Not disclosed for Trustees |
Other Directorships & Interlocks
| Company | Interlock/Relationship | Notes |
|---|---|---|
| Ecolab Inc. | Finance Chair; SHE Committee | Reinforces capital allocation expertise and safety/sustainability oversight |
| FEMSA | Director | Consumer/retail logistics exposure |
| Republic Services | Director | Environmental compliance and safety oversight relevance |
| Western Asset-managed funds | Trustee across multiple series | Shared governance across fund complex; potential interlock with adviser ecosystem |
Expertise & Qualifications
- CIO for William H. Gates III and Gates Foundation Trust since 1994; deep investment acumen and capital allocation expertise.
- Education: BA Economics (Claremont McKenna College), MBA (University of Chicago).
- Board-recognized skills: portfolio management and governance experience; effective oversight and business judgment.
Equity Ownership
| Item | As of Dec 31, 2024 |
|---|---|
| Beneficially owned shares of WEA | None |
| Shares outstanding (WEA) | 11,865,600 |
| Ownership % | 0.00% (derived from None and 11,865,600) |
| Aggregate dollar range across fund family | Over $100,000 |
- All Trustees/officers as a group owned <1% of outstanding WEA shares as of Dec 31, 2024.
Related-Party Exposure and Conflicts
- Western Asset has provided discretionary investment advice since 1997 to one or more Gates accounts overseen by Larson; since Dec 31, 2021, the value of those portfolios did not exceed 1.0% of Western Asset’s total AUM, and no changes are contemplated. This is a potential related-party link given Western Asset is WEA’s adviser, but magnitude is low; Larson remains an Independent Trustee.
Insider Trades
- No Form 4 filings for Michael Larson appear among WEA’s most recent SEC documents; the 2025 filing set includes no Form 4 referencing him. [ListDocuments: 20 most recent; none are Form 4 for Larson]
Governance Assessment
- Strengths: Independent status; broad committee engagement (Audit, Governance, Contracts, Performance); independent board leadership and committee chairs; consistent attendance; external roles reinforce finance, risk, and sustainability competencies.
- Alignment: No WEA share ownership (neutral for skin-in-the-game), but significant aggregate exposure across the Franklin Templeton/Western Asset fund family indicates broader fund complex alignment; WEA Trustee pay is fully cash-based, avoiding equity-linked conflicts at the fund level.
- Potential conflicts: Western Asset’s advisory relationship to Gates-managed accounts introduces an interlock; disclosed with quantitative cap (<1% AUM), mitigating risk. Continued oversight via independent Audit and Governance Committees reduces conflict risk.
- Red flags: None apparent on attendance or pay anomalies; no equity award repricing, hedging/pledging or related-party transactions beyond the disclosed Gates accounts advisory relationship; no legal or SEC proceedings disclosed.