(Reuters) – A major shareholder consulting firm has reprimanded Berkshire Hathaway Inc. for awarding large salary packages to the two leading candidates to succeed Warren Buffett as CEO.
Institutional Shareholder Services noted that Vice President Greg Abel and Ajit Jain were each awarded $ 16 million in salaries and $ 3 million in bonuses in 2020, the same as in 2019, and said it was "unclear" if any of their salaries were tied to Berkshire's performance.
The company said that "continued lack of transparency" raised questions about the oversight of Berkshire's Remuneration Committee and advised shareholders to abstain to re-elect their members ̵
Berkshire does not grant options, it did not immediately respond on Tuesday to a request for comment on the ISS report on April 16.
ISS also offered "precautionary support" to Mr. Buffett, citing Berkshire Hathaway Energy. the unit's failure to set greenhouse gas emissions targets or commit to net zero by 2050.
Mr. Abel oversees non-insurance entities and Mr. Jain oversees insurance entities in Omaha, Nebraska-based Berkshire, whose dozens of companies include Geico BNS Insurance
Mr Buffett and Vice President Charlie Munger focus on capital allocation and investment.
Asks kshire has recommended that shareholders re-elect all 14 board members at their annual meeting on May 1 and reject shareholder proposals for greater information on its efforts to tackle climate change and promote diversity and
Shareholders will not participate due to the COVID-19 pandemic, but Berkshire will allow the proposal on diversity and inclusion to be presented at a distance.
Mr. Buffett controls nearly a third of Berkshire's voice. This makes it difficult for shareholders to vote when he is on the opposite side. Catalog