Shareholders want to keep Buffett in one position. The board of directors — against

The National Legal and Political Center (NLPC) on behalf of the shareholders of Berkshire Hathaway proposes to divide the powers of the chairman and the chief executive officer of the company. Now, both these positions are held by Warren Buffett for 53 years. Berkshire’s annual meeting will be held on May 6 in Omaha. This is stated in the statement of the center.

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Buffett is now 92 years old, he has been the holder of a controlling stake in Berkshire since 1965, as well as its chairman and chief executive officer since 1970. NLPC believes that the combination of roles weakens the structure of the corporation’s management, and Buffett at the same time “may have excessive influence on council and his agenda, weakening the supervision of the board of directors over management.”

It is necessary to begin the transition from the “concentrated leadership and power of Mr. Buffett”, especially since the successor, Greg Abel, has long been determined, the organization emphasizes.

In the future, it will be only more difficult for the company to “move from a personality-oriented image to a performance-based image,” NLPC believes. “Warren Buffett turns 93 this year, and his chief adviser, Charlie Munger, turns 99,” said NLPC Chairman Peter Flaherty. “We’re not ageists, but Berkshire Hathaway has already determined who will be the next CEO and likely chairman, so what are they waiting for?” NLPC submitted a similar request last year, but shareholders voted against it by a margin of 6 to 1. Now the board of directors of Berkshire Hathaway has also officially expressed the opinion that Buffett should occupy both roles, as it has been for more than 50 years. “Mr. Buffett and other members of the Board of Directors discuss succession planning in detail at each Board meeting. In the event of his death or inability to manage Berkshire, none of the members of the Buffett family will participate in the management of Berkshire, but as very large shareholders of Berkshire, the Buffett family will assist the Board of Directors in the selection and supervision of the CEO chosen to replace Mr. Buffett. At the same time, Mr. Buffett believes that it would be reasonable for a member of the Buffett family to serve as non-executive chairman of the board of directors. Ultimately, however, the then board of directors will be responsible for this decision,” the statement said.

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Source: Ministry of Finance

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