Berkshire Hathaway Inc. said its median employee last year made a little over half the $100,000 salary that Chairman Warren Buffett was awarded for running the conglomerate, making him the world’s third-richest person.
In a regulatory filing, Berkshire said Buffett’s salary, which has not been changed for more than 25 years, was about 1.87 times the $53,510 median pay, based on a sample of about two-thirds of Berkshire’s 377,000 employees across some 90 businesses such as Geico insurance, the BNSF rai, road and Dairy Queen ice cream.
The 1.87 pay multipliers are the opposite of the three-figure multipliers that some chiefs of big U.S. companies receive.
However, almost all of their fortunes and those of Berkshire employees are far smaller than Buffett’s, whose $88.8 billion net worth trails only those of Amazon’s Chief Executive Jeff Bezos and Microsoft Corp.’s co-founder Bill Gates.
Currently, Berkshire is working with Amazon and JPMorgan Chase & Co to develop a company that lowers healthcare costs. Gates is a Berkshire director and longtime friend of Buffett.
Friday’s filing reveals that Berkshire also provided Buffett with $375,000 of home and personal security services in 2017, while Buffett, 87, paid back Berkshire $50,000 for personal expenses.
Also, Berkshire Vice Chairman Charlie Manger, 94, drew his usual $100,000 salary in 2017, while Chief Financial Officer Marc Hamburg’s pay rose 46 percent to $2.29 million.
However, pay was not disclosed for Greg Abel and Ajit Jain, the new vice chairmen respectively overseeing Berkshire’s non-insurance and insurance operations. it will continue to be determined by Buffett.
Berkshire also suggested the rejection at its May 5 annual meeting in Omaha, Nebraska of proposals by two shareholders.
Marcia Sage wants Berkshire to issue a report on its methane emissions, while Freeda Cathcart wants Berkshire to encourage more operating businesses to issue sustainability reports.
Berkshire called Sage’s proposal “foolish”, and said Cathcart’s was “inconsistent with Berkshire’s culture” of letting managers do their jobs without Buffett’s interference. Buffett controls 32 percent of Berkshire’s voting power.
BWorldFinance is your primary source of news in the financial market, technology, and more. Visit bworldfinance.com now and get the latest happenings in the market. Register an account now and begin your investing journey!