Berkshire Hathaway director Olson resigns, Buffett opposes shareholder proposal
By Jonathan Stempel
(Reuters) – Berkshire Hathaway said Friday that director Ronald Olson, in addition to Warren Buffett, will leave the board due to policy changes.
Berkshire also said in an agency statement at its annual meeting in Omaha, Nebraska that the board unanimously urged to reject the recommendations of seven shareholders, including diversity and anti-discrimination efforts at its subsidiaries.
Berkshire also said Buffett’s salary is $405,111 in 2024, including his usual $100,000 salary and personal and family safety.
Vice Chairman Greg Abel is expected to replace Buffett as CEO, and Vice Chairman Ajit Jain has seen their compensation rise by $1 million to $21 million.
Abel, 62, oversees non-insurance businesses such as BNSF Railway and Berkshire Hathaway Energy, while Jain, 73, oversees insurance companies such as Geico Car Insurance.
Olson, 83, is a partner at the law firm Tolles & Olson and has served as a Berkshire director since 1997.
He left Berkshire’s 14-member board of directors due to new-age restrictions on his corporate governance guidelines. All other directors except Buffett are 75 years old or under.
Olson did not immediately respond to a request for comment.
Buffett was forgiven for age restrictions because he controlled Berkshire’s 30.3% voting rights, triggering an exception to at least 5%.
The 94-year-old billionaire also owns about 14.4% of Berkshire stock. If the independent director wants him to stay, he will be allowed to serve as a director after retirement.
Shareholder proposals include resolutions from Conservative investors, Berkshire reports on how its business practices affect employees based on race, color, religion, gender, ethnic origin and political perspectives and the risks of its subsidiaries’ race-based programs.
Berkshire’s board of directors called the two reports unnecessary, saying the subsidiary had its own policies, “Berkshire’s approach is simple – to abide by the law and do the right thing.”
The board also opposed the proposal to create a committee to oversee diversity and inclusion, saying its audit committee has overseen diversity matters.
It also said a proposal to oversee the inconsistency and inconsistency of independent directors related to artificial intelligence and Berkshire’s dispersed culture.
(Reported by Jonathan Stempel, New York; Edited by Richard Chang)
