By Jonathan Stempel
(Reuters) – Berkshire Hathaway said on Friday longtime Director Ronald Olson will be leaving its board because of a policy change requiring directors, except for Warren Buffett, to step down after turning 80.
In a proxy statement for its May 3 annual meeting in Omaha, Nebraska, Berkshire also said its board unanimously urged the rejection of seven shareholder proposals, including three on its subsidiaries’ diversity and anti-discrimination efforts.
Berkshire also said Buffett’s compensation was $405,111 in 2024, comprising his usual $100,000 salary plus personal and home security.
Vice Chairman Greg Abel, who is expected to succeed Buffett as chief executive, and Vice Chairman Ajit Jain saw their compensation grow $1 million to $21 million each.
Abel, 62, oversees non-insurance businesses such as the BNSF railroad and Berkshire Hathaway Energy, while Jain, 73, oversees insurance businesses such as Geico car insurance.
Olson, 83, is a partner at the law firm Munger, Tolles & Olson, and has been a Berkshire director since 1997.
He is leaving Berkshire’s 14-member board because of the new age limit in its corporate governance guidelines. All other directors apart from Buffett are 75 or younger.
Olson did not immediately respond to requests for comment.
Buffett is excused from the age limit because he controls 30.3% of Berkshire’s voting power, triggering an exception for people who control at least 5%.
The 94-year-old billionaire also owns about 14.4% of Berkshire stock. He would be allowed to remain a director upon retiring, if the independent directors want him to stay.
Shareholder proposals include resolutions by conservative investors that Berkshire report on how its business practices affect employees based on race, color, religion, sex, national origin and political views, and on risks from its subsidiaries’ race-based initiatives.
Berkshire’s board called both reports unnecessary, saying subsidiaries set their own policies and “Berkshire’s approach is simple – follow the law and do the right thing.”
The board also opposed a proposal to create a committee to oversee diversity and inclusion, saying its audit committee already oversees diversity matters.
It also said a proposal to have independent directors oversee risks associated with artificial intelligence was unnecessary and inconsistent with Berkshire’s decentralized culture.
(Reporting by Jonathan Stempel in New York; Editing by Richard Chang)
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