American business magnate Warren Buffett tells the next Berkshire Hathaway CEO that he or she should not be greedy. And Buffett is currently the second richest person in the world.
The 84-year-old Warren Buffett stuck with his usual $100,000 year salary in 2014, and he has stayed at this amount for many decades. His company, based out of Omaha, Nebraska, shared this information in a March 13 regulatory filing.
As well, in his annual letter to shareholders this year, Buffett tells the next CEO to beware of being greedy.
“He can’t help but earn money far in excess of any possible need for it,” wrote Warren Buffett, the chairman and CEO of Berkshire Hathaway. “But it’s important that neither ego nor avarice motivate him to reach for pay matching his most lavishly compensated peers, even if his achievements far exceed theirs.”
In a letter to shareholders that is much longer than usual, Warren Buffett was celebrating 50 years with Berkshire Hathaway this year. And in his letter he explained many things to the next generation of Berkshire leadership. He talks about the benefits of running a decentralized conglomerate, as well as cautioned against diluting shareholders by using stock in order to fund future takeovers.
Howard Buffett, nonexecutive chairman and son of Warren Buffett, will be able to take care of things if there is an underperforming CEO, wrote the Oracle of Omaha. Buffett also discusses the risks of bureaucracy, complacency and arrogance with the benefits of sending a company first message.
“A CEO’s behavior has a huge impact on managers down the line,” wrote Warren Buffett. “If it’s clear to them that shareholders’ interests are paramount to him, they will, with few exceptions, also embrace that way of thinking.”