Bull Bear Report May 04 2010

Berkshire Not Stingy With Pay

By laura lorber

Just because Warren Buffett takes home only $100,000 doesn't mean his executives come as cheaply.

Some of Berkshire Hathaway's top executives earn in the tens of millions annually, reports WSJ.com's Marketbeat blog. The company tends to base managers pay on how much their companies outperform their competitors.

"You've got to treat people fairly," he said at Berkshire's annual shareholder meeting, according to the paper.

While managers' pay varies according to the different businesses they're in, each pay plan has one thing in common: None uses a compensation consultant.

The Next Oracle

The annual meeting, held in Omaha over the weekend, did little to answer questions about who would succeed the 79-year-old Buffett, according to Marketbeat. MidAmerican Energy Holdings Chairman David Sokol still appears to be the front-runner to lead the company. And Buffett said there were four contenders for his job as chief investment officer.

Another Berkshire standout: Ajit Jain, who runs is large and extremely profitable reinsurance business, Marketbeat reports. "Ajit cannot be replaced," Buffett said.

Write to Laura Lorber

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