Buffett Berkshire: Vice Presidents Jain and Abel Win $ 18 Million

(Reuters) – Berkshire Hathaway Inc. announced on Friday that its new vice presidents, Greg Abel and Ajit Jain, had each received about $ 18 million last year, in the first detailed insight into the pay of men seen as the main candidates for the succession of Warren Buffett. the chief executive of the conglomerate.

Abel, 56, and Jain, 67, who became vice-presidents in January 2018, both received a salary of $ 16 million plus a bonus of $ 2 million, according to a document filed by the US Securities and Exchange Commission. -United. Buffett fixes a compensation for both.

The payments show Buffett's willingness to pay Berkshire's youngest executives in the same way as other publicly traded companies, although Berkshire does not grant stock options.

For more than a quarter of a century, Buffett earned $ 100,000 in Berkshire. But its 16.5% stake in the company based in Omaha, Nebraska, accounts for most of its net worth, estimated at $ 84.4 billion by Forbes magazine.

Abel oversees Berkshire's non-insurance-related activities such as the BNSF Railroad, the manufacturer of Precision Castparts aircraft parts, retail activities such as Fruit of the Loom and the footwear. Brooks, and Berkshire Hathaway Energy, where he remains executive chairman and holds 1% of the voting shares. .

Meanwhile, Jain has long been Berkshire's leading insurance executive and oversees its operations in this sector, including car insurer Geico and reinsurer General Re.

In an interview with CNBC last month, Buffett said the two men were "doing a fabulous job."

Jain also controls about $ 123 million worth of Berkshire shares, including the shares of his wife and a private charity, while Abel oversees about $ 2 million, according to the paper filed Friday.

Buffett, 88, still oversees most of Berkshire's common equity investments, including Apple Inc. and Wells Fargo & Co, and Charlie Munger, 95, senior vice president, who is responsible for making important investment decisions. capital allocation.

The deposit indicated that Buffett's total compensation in 2018 was $ 388,968, including $ 288,968 for personal and home security.

Munger, also a billionaire, received a salary of $ 100,000. Chief Financial Officer Marc Hamburg received $ 2.26 million.

Buffett's pay was about 6.63 times that of Berkshire's median salary of $ 58,691, based on a sample of about two-thirds of his approximately 389,000 employees.

The deposit did not include any shareholder proposal to be voted at the May 4 Berkshire Annual Meeting. Such proposals usually fail with large margins. Buffett still has 31.4% of Berkshire's votes.