Berkshire Hathaway Inc. CEO Warren Buffett, whose list of possible successors in March contracted with the resignation of David Sokol, said the first option has the integrity required work.
"The leading candidate at this time, I put a lot of money on it being straight as an arrow," said Buffett, 80, today's shareholders at the annual meeting of Berkshire.
Buffett is the size to executives of 70 subsidiaries of Berkshire in the search for a successor. Sokol, 54, was considered by Buffett biographer Andrew Kilpatrick as the leading candidate before he resigned amid revelations about the affairs of its population. Omaha, Nebraska-based Berkshire said in February that there were four candidates, without identifying them.
"Investors are very concerned about the succession and with reason, and the situation becomes more urgent every year," said Jill Fisch, a professor at the University of Pennsylvania Law School who has written about corporate governance. "In terms of future uncertainty, which is the greatest risk of Berkshire Hathaway."
Buffett's eventual replacement will be made by a company of 200 billion U.S. dollars, the composition and culture are largely the expression of a single person. The CEOs of each operating unit, Fruit of the Loom to Dairy Queen to Geico, were examined by Buffett before acquisitions and promotions.
Buffett, who is also chairman, Sokol was based on more than a decade as a negotiator and administrator, the expanded responsibilities of the executive of Berkshire extend across energy, construction and luxury travel companies. Buffett announced the resignation of the administrator on March 30 and revealed that Berkshire Sokol had helped negotiate the acquisition of Lubrizol Corp. this year, while buying shares in the company.
"Risk of Succession"
"CEO succession is high risk in our view, in light of the recent departure of David Sokol," said Jay Gelb, an analyst at Barclays Plc, in a research note on April 20.
Both the "quality person" and "management skills" are part of criteria for the next Buffett CEO of Berkshire, said today at the annual shareholders meeting.
"It is vital that you have someone in Berkshire that is running the place that cares more about Berkshire than it cares about itself," he said. "We have several candidates who comply with it, and the idea of an independent chairman is part of a belt and suspenders."
Buffett refers to the CEOs of Berkshire units as "the All-Stars" and drew a handful of each year for public worship. Reinsurance head Ajit Jain, CEO Matthew Rose rail, energy executive Gregory Abel and Sokol were praised Buffett's annual letter to investors in February.
Ajit Jain
Buffett said the March 22, Jain, 59, is qualified to be president. Jain, who was born in India, joined Berkshire for more than two decades. He runs a reinsurance company that specializes in high risk and pick up the premiums that have provided funds for investment by Buffett.
"He loves what he does not seek to carry my work," Buffett said in a press conference in Bangalore. "If he was, the board will probably put it there in a minute."
Berkshire board includes Bill Gates, cofounder of Microsoft Corp., Susan Decker, former president Yahoo! Inc. and Comcast Corp. executive vice president Stephen Burke.
"I have a commitment to stay involved with Berkshire as a permanent thing," Gates said in a 2009 interview with Bloomberg Television. "We always have to think about what could happen and make sure that Berkshire is not just great now, but forever." Buffett has pledged most of his Berkshire shares to the Gates foundation.
Rose, Abel
Buffett acquired the talent management by acquisition. He is directed to well-managed and attracts CEOs sell their companies with the promise to leave management in place. Rose, 52, joined Omaha-based Berkshire last year's acquisition of 26.5 billion U.S. dollars of Burlington Northern Santa Fe Sokol and Abel, 48, came in 2000 when they sold Berkshire's MidAmerican Energy Holdings .
Buffett's responsibilities will be divided at his death or retirement, among at least three people. A CEO will oversee the operational units and the managers of one or more investment will be in charge of the portfolio. Buffett said Monday that his son Howard is likely to assume the post of executive chairman and has no "designs" to take over.
Todd Combs
Next CEO of Berkshire was given oversight of a company with over $ 100 billion in invested assets and operating subsidiaries in industries including energy and railways, and insurance products and consumers. Todd Combs, a hedge fund manager before he was hired last year and given the responsibility for $ 1 billion to $ 3 billion.
Sokol buy shares in Lubrizol Corp. after talks start purchasing on behalf of Berkshire for the manufacturer of motor-additives. The purchase of shares in January may have given Sokol a profit of about $ 3 million, according to the revelations of Buffett and the data compiled by Bloomberg. The trades violated company policy insider, Buffett said today.
Sokol "would not, and no, bad trade, or otherwise violate any reasonable reading of the policies of Berkshire Hathaway," said a statement from William Levine, a lawyer at Dickstein Shapiro LLP Sokol Washington.
Berkshire managers praised by Buffett also include Geico CEO Tony beautiful, Grady Rosier, who runs the business McLane food distribution and Vic Mancinelli, who directs CTB, Inc., a farm produce business.
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