Last year at Berkshire Hathaway none of the top executives received substantial raises, except for the CFO Marc Hamburg his salary grew 6 % to $924,750, more than the boss Warren Buffet. Buffet received $75,000 in bonuses.
Buffet is not upset though, the Huffington Post reports, ” He favors simple compensation arrangements with incentives tied to things that executives can control. Many items The Associated Press routinely includes in its executive compensation calculations don’t exist at Berkshire, including bonuses, performance-related bonuses, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.”
Another way upper management controls the company is through board members.
“The proxy Berkshire filed Friday also revealed a shareholder proposal that would require the company to establish goals for reducing greenhouse gas emissions at the utilities it owns through its MidAmerican Energy subsidiary,” the Huffington Post reports.
The board owns enough Berkshire stock to control 38 % of voting power–they opposed the proposal. Berkshire’s board said in the proxy statement. “Establishing such reduction goals at this time as additional EPA regulation of greenhouse gases are being developed would be contrary to the responsibilities of our rate-regulated utilities and to our customers whose utility bills could be dramatically affected.”
Berkshire owns roughly 80 subsidiaries, including clothing, furniture, jewelry and corporate jet firms, but its insurance and utility businesses typically account for more than half of the company’s net income. It also has major investments in such companies as Coca-Cola Co. and Wells Fargo & Co.