Shareholders pressure Berkshire Hathaway to weaken Buffett’s grip on power
Berkshire Hathaway lead shareholder and top officer Warren Buffett (pictured) faces a challenge to his near omnipotent leadership of the group by a group of shareholders demanding a split between the posts of CEO and board chairman.
The National Legal and Policy Center will demand at the company’s annual general meeting (AGM) at the end of April that, as a matter of policy, the group appoint an independent member to chair its board of directors, separate from the CEO post, draft resolutions for the meeting show.
"We believe these roles – each with separate, different responsibilities that are critical to the health of a successful corporation – are greatly diminished when held by a singular company official, thus weakening its governance structure," the National Legal and Policy Center argued in its draft proposal.
Berkshire Hathaway management recommends shareholders shoot down the proposal, but does concede that the posts could be separated when Buffett eventually steps down.
"The Board believes that as long as Mr Buffett is Berkshire’s CEO, he should continue as Board Chair and as Berkshire’s CEO," Berkshire said in response, citing Buffet's 32% voting stake.
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