Warren Buffett | Image:Pixabay
Buffett boosts salary: Berkshire Hathaway, under the leadership of Warren Buffett, has increased the annual pay of Greg Abel, the CEO-designate, to $20 million. This move came as the conglomerate reported a record operating profit.
The company also disclosed its stance on various shareholder proposals, advising against six, which included requests for more transparency regarding efforts to reduce greenhouse gases and enhance diversity, as well as closer monitoring of safety measures within its BNSF railroad unit. Berkshire shared these details in its annual proxy filing ahead of its annual meeting scheduled for May 4 in Omaha, Nebraska.
Abel’s business portfolio
Abel’s compensation primarily consists of his salary, which rose from $19 million the previous year. This increase includes a $16 million salary and a $3 million bonus. As vice chairman, the 61-year-old Abel oversees Berkshire’s non-insurance operations, including BNSF, Berkshire Hathaway Energy, and various other ventures in chemicals, industry, and retail. Similarly, Vice Chairman Ajit Jain, responsible for overseeing insurance operations such as Geico, also received a salary increase to $20 million from $19 million.
Buffett’s steady salary
Warren Buffett, at 93 years old, maintains a salary of $100,000, unchanged for over 35 years, supplemented by personal and home security expenses. However, his significant ownership stake in Berkshire, amounting to 15.1 per cent, translates to substantial wealth, ranking him sixth globally on Forbes’ list with a fortune of $135 billion. Berkshire reported an operating profit of $37.4 billion in 2023.
Despite shareholder proposals regarding climate initiatives and diversity efforts, Berkshire, with Buffett holding 31.2 per cent of voting power, faces an uphill battle for their passage. For instance, one proposal urged the formation of a railroad safety committee following a train derailment in Ohio, but Berkshire argued against it, citing its existing safety programmes and its culture of allowing operating units autonomy in handling their affairs.
China policy response
Another proposal focused on Berkshire’s stance toward China, with concerns raised about the company’s approach to the “China threat.” Berkshire countered by stating that it already addresses such issues through its policies and deemed issuing a separate report unnecessary.
Overall, Berkshire’s proxy filing sheds light on its executive compensation decisions and its response to shareholder concerns, setting the stage for discussions at its upcoming annual meeting.
(With Reuters Inputs)
