Berkshire Hathaway, led by Warren Buffett, announced a significant increase in compensation for Greg Abel, Buffett’s apparent successor, setting his pay at $20 million for the last year.
This adjustment reflects a $1 million increase from the previous year, marking a milestone as the conglomerate reported a historic operating profit.
Abel, who plays a crucial role in managing Berkshire’s vast array of non-insurance businesses, including the BNSF railway and Berkshire Hathaway Energy, received a compensation package that primarily consists of a $16 million salary and a $3 million bonus.
Similarly, Ajit Jain, responsible for insurance operations like Geico, saw his earnings rise to $20 million from $19 million.
Despite Buffett’s modest personal salary of $100,000, which has remained unchanged for over three decades, his significant stake in Berkshire, amounting to 15.1%, underscores his substantial wealth, estimated at $135 billion by Forbes.
The conglomerate’s operating profit soared to $37.4 billion in 2023, setting a new record.
In its annual proxy filing, Berkshire Hathaway also addressed shareholder proposals urging the company to enhance its disclosures on greenhouse gas reduction efforts, diversity initiatives, and its dependency on China, among other issues.
However, Berkshire recommended the rejection of these proposals, pointing out the minimal support similar suggestions received in the previous year.
With Buffett controlling a dominant share of the voting power, the adoption of proposals contrary to his stance appears unlikely.
Among the shareholder concerns was a proposal from the AFL-CIO Equity Index Funds, prompted by the Norfolk Southern train derailment in Ohio, suggesting the establishment of a railroad safety committee to mitigate financial risks associated with such incidents.
Berkshire countered by highlighting BNSF’s advanced safety programs and dismissed the need for the committee, emphasizing its unique operational culture and decision against adopting the “Precision Scheduled Railroading” model, which has been criticized following the Ohio accident.
Another proposal by the National Legal and Policy Center challenged Berkshire’s stance towards China, referencing Charlie Munger’s comments on fostering relations with China.
Berkshire defended its position, citing its “Prohibited Business Practices Policy” that addresses dealings with China and human rights considerations, deeming a separate report unnecessary.
These developments were shared ahead of Berkshire’s annual meeting scheduled for May 4, in Omaha, Nebraska.