(Reuters) – On Friday, Berkshire Hathaway Inc said its newest vice president, Greg Abel and Ajit Jain, were all allocated about $ 18 million last year. In the first detailed view of the men, the leading candidates were paid to succeed Warren Buffett as the executive director of the conglomerate.
Berkshire Hathaway shareholders go through a video screen 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 salary plus $ 2 million in bonus, according to a US Securities and Exchange Commission filing. Buffett replaces both.
The payouts show Buffett's willingness to pay Berkshire's younger leaders in a manner similar to that of other publicly traded companies, but Berkshire does not provide options.
For more than a quarter of a century, Buffett has paid $ 100,000 in Berkshire. But his 16.5 percent stake in Omaha, Nebraska-based corporations accounts for most of his net worth, estimated at $ 84.4 billion by the Forbes magazine.
Abel oversees Berkshire's non-insurance operations, such as the BNSF railway, Precisions Castparts, aircraft parts manufacturers, retail companies such as Fruit of the Loom and Brooks running shoes, and Berkshire Hathaway Energy, where he remains executive chairman and owns 1 percent of the voting rights.
Meanwhile, Jain has long been Berkshire's best insurance consultant and oversees his business in that industry, including the auto insurance company Geico and reinsurer General Re.
In a CNBC interview last month, Buffett said both men did a great job.
Jain also controls about $ 123 million in Berkshire shares, including shares owned by his wife and a private charity, while Abel monitors $ 2 million, according to Friday's filing.
Buffett, 88, still oversees most of Berkshire's common equity investments, including Apple Inc and Wells Fargo & Co, and with vice president Charlie Munger, 95, handles large capital allocation decisions.
The submission said Buffet's total remuneration in 2018 was $ 388,968, including $ 288,968 for personal and home delivery.
Munger, even billionaire, received a salary of $ 100,000. CFO Marc Hamburg was awarded $ 2.26 million.
Buffet's remuneration was about 6.63 times the median salary of 58 561 with Berkshire employees, based on a sample of about two-thirds of its approximately 389,000 employees.
The submission did not contain any shareholder proposals that would be voted on at Berkshire May 4 annual meeting. Such proposals normally fail with large 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