Investors Push to Know Warren Buffett's Successor

OMAHA, Neb. (AP) — A group of Berkshire Hathaway investors from the AFL-CIO wants to require the company to reveal Warren Buffett's successor. 

The labor union's AFL-CIO Reserve Fund submitted a proposal that Berkshire shareholders will vote on at the annual meeting this May.

The union wants to require the Omaha-based company to disclose a written succession plan that includes the criteria for the next chief executive and the identities of promising internal candidates.

The proposal would address something many Berkshire shareholders have worried about for years because so much of the company's success is attributed to the 81-year-old Buffett.

The proposal faces long odds because Berkshire's board opposes it unanimously, and together that group controls 38 percent of the voting rights. Buffett himself controls about 34 percent of vote.

The board said it does have a detailed plan for replacing Buffett, but it doesn't see any benefit to publishing it. The board knows who would replace Buffett as CEO now if needed, but that could change over time.

Buffett did not immediately respond to a message Wednesday morning, but he has addressed succession planning in the past.

Buffett has outlined Berkshire's plan to split his job into three parts with a CEO, a chairman and several investment managers, but he has never identified the CEO candidates.

Just last month, Buffett sought to reassure Berkshire shareholders in his annual letter be telling them the board had chosen someone to eventually replace him as CEO and identified two good backup candidates.

Buffett has said he believes his son Howard, who already serves on Berkshire's board, would make an ideal chairman.

And Berkshire has hired two hedge fund managers, Todd Combs and Ted Weschler, over the past two years who Buffett says are capable of running the company's entire portfolio eventually.

Buffett has said he remains in good health, and has no plans to retire because he enjoys running the conglomerate he built.

Berkshire owns more than 80 companies, including clothing, furniture, brick and jewelry firms, but its insurance, railroad and utility businesses typically account for more than half of the company's net income. It also has major investments in such companies as American Express Co., International Business Machines Corp., Washington Post Co. and Wells Fargo & Co.

Berkshire Hathaway's Class B shares slipped 5 cents to $80.71 per share in midday trading.

Comments

Resource Library

View All »

Bring the Benefits of Decision Tree Analysis to Your Everyday...

In this on-demand webinar, learn how to counter the challenges of litigation with predictive analytics...

Learn and Apply the Secrets of Successful Businesses to Your...

What does it take to elevate your agency to be known as the best of...

Have you outgrown your QA system?

Your claims audit tools must handle organizational growth and changing best practices. Download the "25...

Complimentary Sales Closer Questionnaires for Commercial Residential Property Insurance

Help property owners or managers compare your commercial residential property insurance coverage vs. the competition....

The Latest Business Intelligence Capabilities to Reduce Costs and Enhance...

SIMS Insight is the advanced business intelligence module of SIMS Claims. Want more information? Download...

When Banks Won't Help, Oak Street Funding Will.

Our commission-based loans are designed to help agents and brokers invest in their business, consolidate...

Home Run Leads are Here!

Our high quality leads will have you swinging for the fences and knocking your sales...

We Have Your New Formula for Success!

Your goal is to deliver maximum impact on those critical aspects of business that drive...

Complimentary White Paper: What Makes a House a Home?

The restoration vendor is the first person on site after a disaster strikes a home...

Complimentary Case Study on Data and Analytics Solutions

Infinilytics provided their client a solution platform with an increased scope of data insight and...

Risk Management Report eNewsletter

Identify problems involving emerging risks, reinsurance, and business interruption with help from Risk Management Report - FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.