Bloomberg
Buffett opposes climate proposal, pays $ 19 million to Jain, Abel
(Bloomberg) – Warren Buffett’s Berkshire Hathaway Inc. is opposing two shareholder proposals related to climate change and diversity, citing the unique structure of the expanding conglomerate. She said that Berkshire, which has companies ranging from the BNSF railroad to auto insurance company Geico and retailer See’s Candies, operates in a decentralized manner, with each company free to deal with issues in the way that is best for its business and industry. “There are few centralized or integrated business functions. We want our managers to do the right things and we give them tremendous latitude to do that, ”Berkshire said in her proxy process on Monday about a climate proposal submitted by the California Civil Service Retirement System, Federated Hermes Inc. and Caisse de Depot et Placement du Quebec. “Consistent with our business model, each subsidiary is independently responsible for identifying and managing the risks and opportunities associated with its business, including those related to climate change.” Buffett, for decades, adopted Berkshire’s decentralized structure, employing just 26 people at the corporate headquarters of a conglomerate valued at about $ 590 billion. The board also objected to an As You Sow diversity and inclusion proposal, working on behalf of Handlery Hotels Inc., saying its request for quantitative and comparable data to determine the effectiveness of Berkshire’s diversity and inclusion programs ” improperly “suggests that there is standardized data for all of Berkshire’s more than 60 operating businesses. ‘Dissimilar operations’ “Berkshire’s operating businesses represent different sectors that operate in various locations around the world,” the company said in the document. “It would be unreasonable to ask for uniform quantitative reports for the purpose of comparing unequal operations in different geographic locations.” Buffett’s compensation for 2020, also disclosed in the lawsuit, increased by just 1.5% over the previous year. Buffett and Charlie Munger, his longtime business partner and vice president of Berkshire, each received $ 100,000 in annual salaries for more than 25 years. Buffett’s top representatives, Greg Abel and Ajit Jain, each received a salary increase of just $ 250 in 2019, with each earning more than $ 19 million a year. Buffett, president and CEO of Berkshire, has routinely faced proposals from shareholders asking for more disclosures related to the environment. The company rejected an attempt in 2016 to obtain a more detailed report on climate change risk for its insurance subsidiaries. Still, the Berkshire representative for its annual meeting, scheduled as a virtual event on May 1, details why the company has faith in its decentralized approach to major issues. Buffett’s conglomerate cited work on its energy operation to increase its investment in renewable energy and BNSF’s efforts to develop new technologies that could reduce fuel use and reduce carbon emissions. “Through its assessments of climate-related risks and opportunities, Berkshire’s businesses can determine it, it is advantageous to publicly commit to reducing its emissions,” Berkshire said in the process. “Other Berkshire companies are making similar decisions that make a lot of sense for Berkshire’s environment and economy. These decisions are determined by their respective management teams and not as a result of a decree or requirement required by Berkshire’s corporate management team ”, which is leading to“ great results ”. For more articles like this, visit us at bloomberg.comSubscribe now to stay ahead with the most trusted source of business news. © 2021 Bloomberg LP