No. of Recommendations: 1
Well. we are not alone.
WSJ carries a piece too, titled,
"Buffett's Berkshire Successor Set to Earn One of Top Salaries for an S&P 500 CEO"
The subtitle says a bit more,
"Greg Abel's $25 million salary is well above the median in total pay for big-company chiefs, though dozens of top CEO's earn more with stock and options awards"
Buffett and Munger's favorite topic here. What I have heard,
Ordinary companies pay with money taken (usurped) from shareholders pockets and keep taking it for years and years to come. "it's not an expense at all in modern accounting" "if not an expense, what the hell is it?" Berkshire pays it's leaders for actual performance with cash that the company has already earned; and tied as directly to said leader's direct contribution, separate from the economic tailwinds prevailing in the underlying industry. "we don't pay for simply breathing".
Expect Greg to face questions on this on May 2. Answering such questions will be a rite of passage thing. Beyond the salary issue, Greg will be defending the insinuation here of Berkshire's descent into ordinariness.
