Buffett Shows Strength... Retains Berkshire Chairman Position

91-Year-Old Buffett Does Not Reveal Retirement Plans
Board Chair Replacement Proposal Rejected

Warren Buffett (left), Chairman of Berkshire Hathaway, and Vice Chairman Charles Munger.
[Image source=Reuters Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] The "Sage of Omaha," Warren Buffett (photo), once again demonstrated his enduring presence as chairman of Berkshire Hathaway. At 91 years old this year, Buffett's proposal to replace his position as chairman was rejected by a 6-to-1 vote at Berkshire's shareholders meeting held on the 30th of last month (local time) in Omaha, Nebraska, USA. Having controlled Berkshire's management since 1965, he will thus maintain his position for nearly 60 years.

This vote drew even more attention after CalPERS (California Public Employees' Retirement System), the largest pension fund in the U.S., officially announced it would vote in favor. CalPERS has invested $2.3 billion (approximately 2.85 trillion KRW) in Berkshire. Another shareholder, the nonprofit National Legal and Policy Center (NLPC), has also demanded independence of the chairman role, arguing that "when one person holds both CEO and chairman roles, both roles are diminished."

However, Buffett succeeded in retaining both positions. Calls for his retirement have existed for over 20 years, but since the company had already expressed opposition to this shareholder proposal, the outcome was expected. Major foreign media explained, "Because Buffett holds about 32% of the voting rights, shareholder proposals opposed by management are rejected by a large margin, as in this case."

At this shareholders meeting, attention was focused on Buffett’s retirement plans after he announced that the annual "Lunch with Buffett" auction, which he has held since 2000, would end this year. However, at this meeting held for the first time in three years due to COVID-19, Buffett, now in his 90s, did not reveal any retirement plans. The Glide Foundation, which organizes the event, did not disclose specific reasons for ending the lunch after more than 20 years.

Foreign media reported that Greg Abel, the vice chairman whom Buffett named as his successor last May, again showed little presence. Buffett said, "Berkshire will last forever," adding, "Even if new management comes, they will only be stewards of the culture inherent in Berkshire."

One of Berkshire’s strengths has been Buffett’s ability to make investment decisions quickly and freely without board interference. However, even if Abel becomes the next chairman, it seems unlikely he will enjoy such privileges. Berkshire has already agreed to separate the chairman and CEO roles after Buffett retires.

Buffett himself acknowledged that such changes are inevitable. On the day, he said, "I guess the successor will face a different board internally," adding, "There may be more constraints or issues to discuss." Bloomberg News predicted, "Buffett’s confidence in swiftly executing deals without board interference has been the foundation supporting Berkshire," and "It seems unlikely that his success factors will continue after Buffett’s retirement."

This content was produced with the assistance of AI translation services.