Berkshire Hathaway Inc. on Friday urged the rejection of 4 shareholder proposals recommending that it change Warren Buffett as chairman, report on its plans to deal with local weather danger and scale back greenhouse gases, and enhance range.
The corporate, run by Buffett since 1965, additionally mentioned the 91-year-old obtained $373,204 in compensation for 2021, down from $380,328 a 12 months earlier, comprising his regular $100,000 wage plus private and residential safety.
Although Buffett’s wage is low for a chief govt officer of a serious firm, his 16.2% Berkshire stake includes most of his $117.9 billion internet price, which Forbes journal mentioned makes him the world’s fifth-richest particular person.
Berkshire disclosed Buffett’s pay and proposals on shareholder proposals in its annual proxy submitting, forward of the Omaha, Nebraska-based firm’s April 30 annual assembly.
It additionally mentioned Vice Chairmen Greg Abel and Ajit Jain, who respectively oversee Berkshire’s non-insurance and insurance coverage operations, had been in 2021 every awarded $19 million for a 3rd straight 12 months. Buffett units their pay.
Berkshire has mentioned Abel would turn into CEO and Buffett’s son Howard Buffett would turn into non-executive chairman if Warren Buffett couldn’t proceed in these roles.
One shareholder proposal, from the Nationwide Authorized and Coverage Heart, mentioned these roles are “vastly diminished” as a result of Buffett holds each, weakening governance, and an unbiased director ought to turn into chairman.
Based on the submitting, Berkshire’s administrators agree that’s a good suggestion, however solely after Buffett is not CEO.
In urging rejections of the environmental proposals, Berkshire mentioned many working items already make disclosures regarding local weather dangers, and its insurance coverage operations appropriately handle dangers from greenhouse gases.
It additionally mentioned its working companies have dedicated to range, fairness and inclusion without having course from Buffett.
Berkshire’s dozens of enterprise items embody Geico automobile insurance coverage, the BNSF railroad, Berkshire Hathaway Vitality, Brooks working and See’s candies, amongst others.
Buffett controls 32.1% of Berkshire’s voting energy. Shareholder proposals he opposes usually fail by large margins.
Berkshire’s share value is up 9% this 12 months, whereas the Customary & Poor’s 500 .SPX is down 12%.
(Reporting by Jonathan Stempel in New YorkEditing by Matthew Lewis)
Picture: Warren Buffett (AP Picture/Nati Harnik)
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