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Berkshire rejects shareholder call to replace Warren Buffett as chairman -Breaking

by Mike Robinson

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© Reuters. Berkshire Hathaway chairman Warren Buffett strolls through an exhibit hall, as Berkshire Hathaway Inc shareholders gather in Omaha, Nebraska to hear Warren Buffett, a billionaire investor, at Berkshire Hathaway Inc’s annual shareholder meeting on May 4, 2019. REUTERS/Scott Morgan

Jonathan Stempel

(Reuters) – Berkshire Hathaway, (NYSE:) Inc, on Friday urged that four shareholder proposals be rejected, recommending it replace Warren Buffett, to report on climate risks and decrease greenhouse gasses, as well as improve diversity.

Buffett, who has run the business since 1965, said that Buffett earned $373,204 for 2021. That’s down from $380328 one year prior. It also included Buffett’s usual $100,000 salary as well as personal and household security.

Buffett earns a very low salary for being a chief executive officer at a large company. However, Buffett owns 16.2% Berkshire shares which make up the majority of his $117.9billion net worth. Forbes magazine ranked him fifth richest person on earth.

Berkshire revealed Buffett’s compensation and made recommendations regarding shareholder proposals in an annual proxy filing. This was before the Omaha-based company’s annual meeting on April 30, 2013.

Ajit Jain and Greg Abel, the Vice Chairmen of Berkshire’s insurance and non-insurance operations respectively, received $19 million each for their third consecutive year. Buffett determines their salaries.

Berkshire stated that Abel would be the CEO while Buffett’s son Howard Buffett would take over as non-executive Chairman if Warren Buffett was unable to.

A shareholder proposal from the National Legal and Policy Center stated that these roles were “greatly diminished” by Buffett holding both. This weakens governance and should lead to an independent chairman.

The filing shows that Berkshire directors believe it is a great idea. However, this is only true if Buffett has stepped down as CEO.

Berkshire demanded that the environment proposals be rejected. Berkshire stated that numerous operating units have made disclosures about climate risks and that it has adequate insurance to manage risk from greenhouse gasses.

Buffett was not required to direct the company’s operating businesses in this regard.

Among the many business units in Berkshire are Geico car insurance and Berkshire Hathaway Energy. Brooks running, See’s candies, Berkshire Hathaway Energy, Berkshire Hathaway Energy and Berkshire Hathaway Energy are just a few.

Buffett holds 32.1% vote power in Berkshire. He opposes shareholder proposals by wide margins.

Berkshire’s shares have increased by 9% and the price of its stock is falling by 12%.

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