Author Topic: Buffett/Berkshire - general news  (Read 466949 times)

gfp

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Re: Buffett/Berkshire - general news
« Reply #660 on: January 31, 2018, 05:35:31 AM »
I believe Abel's previous compensation has been detailed in BHE's filings but I don't have them in front of me.  Certainly they did end up disclosing that he holds something like $400 million of BHE shares that can be converted into BRK stock at his option.  Much - if not all - of that was transferred from Sokol, so I'm sure there was a loan involved and it slowly vested to him over time.  There may still be a loan behind it.  And on Doo's chart, Buffett's compensation is mostly security services as he famously takes the same $100k a year as Charlie.  Charlie usually reimburses Berkshire something like $50k a year for 'personal use of postage' and other personal stuff like secretarial time.

edit - added graphic showing BHE comp
« Last Edit: January 31, 2018, 05:44:11 AM by globalfinancepartners »


longinvestor

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Re: Buffett/Berkshire - general news
« Reply #661 on: January 31, 2018, 05:46:52 AM »
And another thing about the compensation regime. Buffett once threatened to come out of the box should anything egregious becomes more prevalent at Berkshire down the road. ;D

villainx

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Re: Buffett/Berkshire - general news
« Reply #662 on: January 31, 2018, 01:36:26 PM »
My question/point with regards to compensation is that whoever becomes the new BRK CEO won't be content with $100K.  Buffett, I believe, said something along the same line.  I don't think BRK future compensation will be so out of line but it would be significant. 

 

rb

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Re: Buffett/Berkshire - general news
« Reply #663 on: January 31, 2018, 03:09:56 PM »
If the new CEO will need to get paid somewhere in the 20-70 million range it would not have a meaningful impact on Berkshire's profitability.

longinvestor

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Re: Buffett/Berkshire - general news
« Reply #664 on: January 31, 2018, 04:01:30 PM »
I have the sense that the next guy likely will not take $100K but he is more likely not to take $20 or $60 or $100 million. It is hard enough to step in those shoes, it is terrible optics to come in after Buffett and take a huge salary like that. That places a great amount of pressure, as if the pressure to deliver shareholder value is not enough in itself. Munger said it best. The real solution to excessive salaries is for the CEO's to voluntarily shun them. I believe that Abel/Jain or whoever steps into Buffett's shoes does just that. They continue the lifestyle they currently have been afforded.  ;) Maybe the guy/gal after the next CEO does something else.

villainx

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Re: Buffett/Berkshire - general news
« Reply #665 on: January 31, 2018, 08:11:04 PM »
I have the sense that the next guy likely will not take $100K but he is more likely not to take $20 or $60 or $100 million. It is hard enough to step in those shoes, it is terrible optics to come in after Buffett and take a huge salary like that. That places a great amount of pressure, as if the pressure to deliver shareholder value is not enough in itself. Munger said it best. The real solution to excessive salaries is for the CEO's to voluntarily shun them. I believe that Abel/Jain or whoever steps into Buffett's shoes does just that. They continue the lifestyle they currently have been afforded.  ;) Maybe the guy/gal after the next CEO does something else.

I thought Buffett already prepared folks for the bad optics by saying the next CEO would be granted some option based compensation.  So... it should be - relatively - massive.  But shouldn't be such that it would be impactful for shareholders.

I guess also, by the time the next guy/gal after the next CEO, BRK will be very, very different, that's when some of the institutional stuff will wear then. 

John Hjorth

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Re: Buffett/Berkshire - general news
« Reply #666 on: February 01, 2018, 12:29:09 PM »
... I thought Buffett already prepared folks for the bad optics by saying the next CEO would be granted some option based compensation. ...

What is your source for posting this, villainx?
« Last Edit: February 02, 2018, 06:25:52 AM by John Hjorth »
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DooDiligence

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Re: Buffett/Berkshire - general news
« Reply #668 on: February 02, 2018, 06:20:20 AM »
https://finance.yahoo.com/news/one-qualification-warren-buffett-like-berkshires-next-ceo-172054448.html
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ValueMaven

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Re: Buffett/Berkshire - general news
« Reply #669 on: February 03, 2018, 06:39:06 AM »
BRK was hammered hard yesterday...down 4% at one point!