Warren Buffett’s Berkshire Hathaway rejects name for silence on hot-button points

By Jonathan Stempel

(Reuters) – Berkshire Hathaway (NYSE:) Inc, run by billionaire Warren Buffett, on Friday urged shareholders to reject proposals that it keep away from discussing hot-button social and political points, and competing proposals that it disclose extra about its local weather change and variety efforts.

The Omaha, Nebraska-based firm additionally urged the rejection for a second straight yr of a shareholder proposal that Buffett, 92, let another person be chairman, whereas remaining chief govt.

Berkshire’s suggestions had been disclosed in its annual proxy submitting, forward of its Might 6 annual assembly.

It additionally mentioned Buffett acquired $401,589 in compensation for 2022, up 8% from 2021, comprising his ordinary $100,000 wage plus private and residential safety.

Whereas Buffett’s wage is low, his 15.6% Berkshire stake contains most of his $101.6 billion web value, which Forbes journal mentioned makes him the world’s sixth-richest particular person.

The proposal to limit Berkshire’s speech got here from the American Conservative Values ETF, which mentioned Berkshire and its dozens of working models ought to “keep away from supporting or taking a public place” on controversial social and political points except their companies required it.

In opposing the proposal, Berkshire mentioned its decentralized construction lets these models function with minimal involvement from Buffett and his high lieutenants, and it was “inconsistent with Berkshire’s tradition” to dictate what to not say.

Shareholder proposals that Buffett opposes usually fail by large margins as a result of he nonetheless controls 31.5% of Berkshire’s voting energy, regardless of having donated greater than $46 billion of Berkshire inventory since 2006.

Berkshire’s greater than $60 billion of inventory repurchases for the reason that finish of 2019 helps protect Buffett’s voting energy.

Proposals final yr on local weather change and variety received assist from solely about one-quarter of votes forged, whereas simply 11% supported changing Buffett as chairman.

The proxy submitting additionally mentioned Vice Chairmen Greg Abel and Ajit Jain, who respectively oversee Berkshire’s non-insurance and insurance coverage operations, had been in 2022 every awarded $19 million for a fourth straight yr.

Buffett units their pay. Abel would grow to be chief govt and Buffett’s son Howard Buffett would grow to be non-executive chairman if Warren Buffett couldn’t proceed.

Berkshire’s companies embody Geico automotive insurance coverage, the BNSF railroad, Berkshire Hathaway Power, Dairy Queen, Fruit of the Loom and lots of others.