By Jonathan Stempel
(Reuters) – 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 variety.
The corporate, run by Buffett since 1965, additionally stated the 91-year-old acquired $373,204 in compensation for 2021, down from $380,328 a 12 months earlier, comprising his common $100,000 wage plus private and residential safety.
Although Buffett’s wage is low for a chief government officer of a significant firm, his 16.2% Berkshire stake includes most of his $117.9 billion internet value, which Forbes journal stated 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 stated 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 stated 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 Nationwide Authorized and Coverage Heart, stated these roles are “significantly diminished” as a result of Buffett holds each, weakening governance, and an unbiased director ought to change 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 stated many working items already make disclosures regarding local weather dangers, and its insurance coverage operations appropriately handle dangers from greenhouse gases.
It additionally stated its working companies have dedicated to variety, fairness and inclusion with no need course from Buffett.
Berkshire’s dozens of enterprise items embody Geico automotive insurance coverage, the BNSF railroad, Berkshire Hathaway Vitality, Brooks operating and See’s candies, amongst others.
Buffett controls 32.1% of Berkshire’s voting energy. Shareholder proposals he opposes usually fail by massive margins.
Berkshire’s share value is up 9% this 12 months, whereas the Commonplace & Poor’s 500 is down 12%.
(Reporting by Jonathan Stempel in New York; Modifying by Matthew Lewis)