(Reuters) – On Friday, Berkshire Hathaway Inc said the latest vice presidents, Greg Abel and Ajit Jain, were all allocated about $ 18 million last year. In the first detailed look at the wages of men, the leading candidates considered Warren Buffett to succeed as the conglomerate's CEO.
Berkshire Hathaway shareholders join a video screens at the company's annual meeting in Omaha on May 4, 2013. REUTERS / Rick Wilking / File Photo
Abel, 56, and Jain, 67, who became Vice Chairman in January 2018, both received $ 16 million in wages plus $ 2 million in bonus, according to a US Securities and Exchange Commission filing. Buffett compensates for both.
Payouts show Buffett's willingness to pay Berkshire's younger executives in a manner similar to other listed companies, even though Berkshire does not provide options.
For more than a quarter of a century, Buffett has earned a $ 100,000 salary at Berkshire. But his 16.5 percent stake in Omaha, Nebraska-based company, accounts for the bulk of his net worth, estimated at $ 84.4 billion by Forbes magazine.
Abel monitors Berkshire's non-insurance business such as the BNSF railroad, explosion lots of aircraft parts, retail such as Fruit of the Loom and Brooks running shoes and Berkshire Hathaway Energy, where he is still the chief executive and owns 1 percent of voting rights.
Jain has long been Berkshire's top insurance director and oversees its operations in this sector, including the auto insurance company Geico and reinsurer General Re.
In a CNBC interview last month, Buffett said both men "do a great job."
Jain also controls about $ 123 million in the Berkshire share, including shares owned by his wife and a private charity, while Abel monitors $ 2 million, according to Friday's filing.
Buffett, 88, still monitors the bulk of Berkshire's equity investments, including Apple Inc and Wells Fargo & Co, and with Vice President Charlie Munger, 95, handling large capital allocation decisions.
The submission said Buffetts total compensation in 2018 was $ 388,968, including $ 288,968 for personal and home security.
Munger, also a billionaire, received a $ 100,000 salary. CFO Marc Hamburg was awarded $ 2.26 million.
Buffett's compensation was about 6.63 times the $ 58 691 median salary of Berkshire employees, based on a sample of about two-thirds of his about 389,000 people's workforce.
Submission did not contain shareholder proposals that were submitted at Berkshire's 4th May annual meeting. Such proposals usually fail with great margins. Buffett still has 31.4 percent of Berkshire's voting power.
Reporting by Jonathan Stempel in New York; Editing by Chris Reese, Rosalba & Brienand Diane Craft