Warren Buffett, the chairman and chief executive officer of Berkshire Hathaway Inc., said his eventual successor would probably be paid more than him to run the company.
“I’ve written a memo to the board in terms of how they should design a pay package,” Buffett told Bloomberg Television’s Betty Liu today in Omaha, Nebraska. “It isn’t $100,000 a year.” He said the next CEO’s salary would be decided by the board.
Buffett, 82, is the world’s third-richest person, with a fortune of more than $57 billion, according to the Bloomberg Billionaires Index. He’s earned an annual salary of $100,000 for more than 25 years to lead Berkshire. He typically reimburses the company half that amount to cover personal expenses, such as postage and phone calls, according to proxy statements.
As Berkshire’s largest shareholder, Buffett amassed his fortune by building the company along with Vice Chairman Charles Munger into a $264 billion business. Buffett said last year that the board had agreed on a candidate to fill the CEO role once he’s gone, without identifying the individual.
“They can probably make a lot more money running Berkshire than any other job they can find,” Buffett said. “It’s a huge enterprise. If they can take a company that’s worth $250 billion and turn it into something that’s worth $500 billion, they are entitled to make a lot of money.”