Warren Buffett is one of the richest men in the world. At the time of writing he’s hovering at third place in the worldwide wealth with around $75 billion to his name. He is also the chairman and CEO of of Berkshire Hathaway, which means that he qualifies for a salary and compensation for his work with his company.
According to research by Glassdoor, the average salary for a CEO is around $13.8 million per year. Since there are a lot of responsibilities that come with the position of chairman and CEO, this probably isn’t that surprising. So how does the salary of Warren Buffett, one of the richest men in the world, match up to the average?
As it turns out, Buffett makes way less than the average CEO. In fact, Berkshire reportedly only pays Buffet $100,000 per year for his services. That figure hasn’t changed for at least the last 25 years, and Buffett even warned that his successor can expect about the same salary to help them refrain from being greedy.
“…He [the CEO] can’t help but earn money far in excess of any possible need for it,” wrote Buffett in his 2014 letter. “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.”
Of course, if you look at Berkshire’s balance sheet, you’ll see that Buffett’s “compensation” is actually a bit higher than $100,000 due to the need for personal security. Those costs have risen slightly in the last few years, according to Investopedia, and were in the $387,800 range in 2016. However, while that figure sounds like a lot, other companies spend more. In fact, Amazon and Oracle both spent more than $1 million on CEO security, and Facebook spent more than $4 million protecting its CEO.