Berkshire Hathaway CEO Warren Buffett Berkshire Hathaway Inc. recommended shareholders to reject four shareholder recommendations on March 11 that included replacing Warren Buffett as chairman, reporting on its strategies to deal with climate risk, reducing greenhouse gas emissions, and improving diversity, according to Reuters. If Warren Buffett is unable to continue in these duties, Abel will become CEO and Buffett’s son Howard will become non-executive chairman, according to Berkshire.
Source: The Business Insider
Berkshire Hathaway Inc. encouraged shareholders on Friday to oppose four shareholder recommendations that would see Warren Buffett replaced as chairman, the company reported on its efforts to address climate risk and cut greenhouse gas emissions, and increase diversity. Buffett has been the CEO of Berkshire Hathaway since 1965, and the 91-year-old was paid $373,204 in 2021, down from $380,328 the previous year, Buffett’s pay is modest for a CEO of a big corporation, but his 16.2 percent Berkshire ownership accounts for the majority of his $117.9 billion net worth, according to Forbes magazine, making him the world’s fifth-richest person. In its annual proxy statement, Berkshire detailed Buffett’s remuneration and recommendations on shareholder resolutions ahead of the company’s April 30 annual meeting in Omaha, Nebraska.
For the third year in a row, Vice-Chairmen Greg Abel and Ajit Jain, who manage Berkshire’s non-insurance and insurance activities, were each rewarded $19 million in 2021. Their remuneration is determined by Buffett. If Warren Buffett is unable to lead Berkshire, Abel will become CEO, and Buffett’s son Howard would become non-executive chairman, according to Berkshire, if Warren Buffett was unable to continue with his positions. According to the National Legal and Policy Center, both duties are “greatly decreased” because Buffett holds both, compromising governance, and an independent director should take over as chairman.
Berkshire’s board concur, according to the document, that this is a good idea, but only after Buffett has stepped down as CEO. Berkshire said several operational divisions already publish climate risk disclosures, and its insurance activities effectively manage risks from greenhouse emissions, thus the environmental suggestions should be rejected. It also stated that its operational companies had made commitments to diversity, equality, and inclusion without the need for Buffett’s guidance.
Geico car insurance, the BNSF railroad, Berkshire Hathaway Energy, Brooks jogging, and See’s sweets are among Berkshire’s hundreds of corporate units. Buffett controls 32.1% of Berkshire’s voting power. Shareholder proposals he opposes normally fail by a big margin. Berkshire’s share price is up 9% this year, while the Standard & Poor’s 500 is down 12%.
