Berkshire says median employee makes over half Buffett's
Send a link to a friend
[March 17, 2018]
By Jonathan Stempel
(Reuters) - Berkshire Hathaway Inc <BRKa.N>
on Friday 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 that made him the world's third-richest person.
In a regulatory filing, Berkshire said Buffett's salary, unchanged for
more than a quarter century, 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
railroad and Dairy Queen ice cream.
The 1.87 pay multiplier contrasts with the three-figure multipliers that
some chiefs of big U.S. companies receive.
But nearly 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.com Inc <AMZN.O> Chief Executive Jeff Bezos and
Microsoft Corp <MSFT.O> co-founder Bill Gates, according to Forbes
Berkshire is working with Amazon and JPMorgan Chase & Co <JPM.N> to
develop a company that lowers healthcare costs. Gates is a Berkshire
director and longtime friend of Buffett.
According to Friday's filing, Berkshire in 2017 also provided Buffett
with $375,000 of home and personal security services, while Buffett, 87,
reimbursed Berkshire $50,000 for personal expenses.
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, the filing said.
[to top of second column]
Berkshire Hathaway CEO Warren Buffett visits the BNSF booth before
the Berkshire Hathaway annual meeting in Omaha, Nebraska, U.S., May
6, 2017. REUTERS/Rick Wilking/File Photo
Pay was not disclosed for Greg Abel and Ajit Jain, the newly installed vice
chairmen respectively overseeing Berkshire's non-insurance and insurance
operations, but it will continue to be determined by Buffett.
Berkshire also recommended 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
Berkshire called Sage's proposal imprudent, 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.
He also owns 17.2 percent of its stock, despite having donated more than $27.6
billion since 2006.
(Reporting by Jonathan Stempel in New York; Editing by Lisa Shumaker)
[© 2018 Thomson Reuters. All rights
Copyright 2018 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.