Berkshire Hathaway Inc on Friday urged the rejection of 4 shareholder proposals recommending that it replace Warren Buffett as chairman, report on its plans to deal with local weather threat and cut back greenhouse gases, and enhance range.
The firm, run by Buffett since 1965, additionally mentioned the 91-year-old acquired US$373,204 in compensation for 2021, down from $380,328 a 12 months earlier, comprising his standard $100,000 wage plus private and residential safety.
Though Buffett’s wage is low for a chief govt officer of a significant 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 individual.
Berkshire disclosed Buffett’s pay and suggestions 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 change into CEO and Buffett’s son Howard Buffett would change into non-executive chairman if Warren Buffett couldn’t proceed in these roles.
One shareholder proposal, from the National Legal and Policy Center, mentioned these roles are “vastly diminished” as a result of Buffett holds each, weakening governance, and an unbiased director ought to change into chairman.
According to the submitting, Berkshire’s administrators agree that’s a good suggestion, however solely after Buffett is now 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 with no need route from Buffett.
Berkshire’s dozens of enterprise items embody Geico automotive insurance coverage, the BNSF railroad, Berkshire Hathaway Energy, Brooks working and See’s candies, amongst others.
Buffett controls 32.1% of Berkshire’s voting energy. Shareholder proposals he opposes usually fail by huge margins.
Berkshire’s share value is up 9% this 12 months, whereas the Standard & Poor’s 500 .SPX is down 12%.- Reuters
