Warren Buffett, The World's 5th Richest Man Has Been on The Same Salary For 40 Years
- Warren Buffett has been on the same salary at his company for the past 40 years
- The billionaire has not received any salary increase since he was placed on $ 100,000-a-year salary in 1980
- In contrast, his employees have been receiving mouthwatering salaries in the past three years
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Investment idol and the owner of Berkshire Hathaway, Warren Buffett has been on the same salary for more than four decades.
According to reports, the billionaire has been on a $100,000 salary since the 1980s and has not received any pay increase since, a revelation by Securities and Exchange Commission filings revealed.
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Stuck on the same salary for 40 years
As the CEO of Berkshire, Buffett suggests to his board of directors how much he receives in salaries and decides the rest of the executives’ compensation.
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The fifth richest man in the world has been on a $100,000 a year since 1980 which is a fraction of the $18 million average pay of S&P 500 CEOS in 2021.
The 90-year-old does not earn many other means also. He made a double salary in yearly directors’ fees in the early 1990s and 2000s before resigning as a director of the Washington Post Company and stepping down from other corporate boards.
The highest annual compensation he has ever gotten at his company, Berkshire was $525 in 2010 made of his $100,000 salary, $75,000 in directors fees and $350,000 assigned to his security fees.
His company spends more on his personal and home security than it pays him directly. Keeping the billionaire safe has cost his company about $300,000 every year since 2008 or about $5 million.
He owns about 100 billion Berkshire stock which he is donating to charity and refuses to spend much.
Buffett's lifestyle revealed
He lives in a family house, drives a basic car and eats at a fast food restaurant.
The investor icon does not use a company car, belong to any high-flying clubs or have any company-owned aircraft.
The billionaire had expressed said he hoped that the next CEO or his successor would already be affluent and won’t be moved to earn 10 or 100 times the money their family requires to live on.
He said:
"They might even wish to, perhaps, set an example by engaging for something far lower than, actually, what you can say their true market value is," he continued, adding it would be "terrific" if that were the case.
He believes that CEOs should be paid well to deliver long-term success for their firms. According to him, huge annual salaries, bonuses and short-term stock options encourage short-term thinking.
Berkshire’s vice chairman has followed Buffett’s steps, receiving an annual salary of $100,000 for several decades.
Employees receive more than him
But on the contrary, Ajit Jain and Greg Abel, heads of the company’s insurance and non-insurance divisions are paid a $16 million salary and $3 million bonus each in the last three years.
Buffett has nominated Abel as his successor as Berkshire CEO.
The company’s finance chief, Marc Hamburg has seen his salary rise from about $300,000 in 1996 to $3.3 million last year.
Elon Musk leads the list of world’s highest paid CEOs in the world
Legit.ng reported that Tesla and SpaceX CEO Elon Musk has emerged as the world’s highest earning CEO in 2021.
The world’s richest person has been on the list for the fourth year. However, his pay package has been more from several share options, adding about $78 billion to his fortunes of $296 billion.
Daily Mail reported that the Tesla CEO’s pay is humongous, leaving the remaining 23 CEOs making half of what he makes, a combined total of $6.3 billion.
Source: Legit.ng
