- Warren Buffett’s annual salary has been $ 100,000 for the past 40 years.
- Berkshire Hathaway spends three times that amount on its security every year.
- Buffett owns about $ 100 billion in Berkshire stock and lives a modest life.
- See more stories on the Insider business page.
Warren Buffett is a legendary investor who leads one of the largest companies in the world and has ranked among the richest people in the world for decades. Nevertheless, he earns a modest annual salary of $ 100,000 – and he hasn’t gotten a raise in 40 years, the SEC files show.
As CEO and Chairman of Berkshire Hathaway, Buffett recommends his board of directors how much to be paid and decides on the remainder of the executives’ compensation. The 90-year-old has earned $ 100,000 a year since 1980 – a fraction of the average salary of $ 15 million for S&P 500 executives In 2019.
Buffett doesn’t earn much from other sources either. He earned double his salary in annual directors ’fees in the 1990s and early 2000s, before he resigned as director of The Washington Post and stepped down from the boards of other companies.
The highest total compensation he received in Berkshire was $ 525,000 in 2010, including his $ 100,000 salary, $ 75,000 in board members ’fees, and $ 350,000 earmarked for his security costs.
Berkshire spends much more on Buffett’s personal and home security than he pays outright. Maintaining the company president has cost the company an average of $ 339,000 a year since 2008, or $ 4.4 million in total.
Buffett isn’t in desperate need of a big salary. He owns nearly $ 100 billion in Berkshire stock – and he Gradually give up – He does not spend much: he lives in a region Modest family home, Driving a basic car, and He eats breakfast at McDonald’s.
The investor also does not use a company car, belongs to any clubs in which Berkshire pays his dues, or flies company-owned aircraft for his personal use.
Buffett shared his views on salaries at the annual shareholder meeting in Berkshire in 2017, when asked how much would be paid to his successor. He expressed his hope that the next CEO will be truly wealthy, and he will not be motivated to earn 10 or 100 times the money their family needs to live with.
“They might want, perhaps, to provide an example by engaging in something much less than, in fact, what you can say about its true market value,” he continued, adding that it would be “cool” if that was the case.
Buffett believes strongly that CEOs must be motivated to achieve long-term success for their companies. He believes that hefty annual salaries, bonuses, and short-term stock options encourage short-term thinking.
Charlie Munger – Buffett’s right-hand man and Berkshire vice president – followed Buffett’s example. SEC filings also show that he has also earned a salary of $ 100,000 a year for several decades now.
In contrast, Ajit Jain and Greg Appel, who head the insurance and non-insurance divisions in Berkshire respectively, are being paid much better wages. Both men have earned a salary of $ 16 million in each of the past three years, plus total bonuses of $ 7 million each.
Finally, Berkshire CFO Mark Hamburg saw his salary increase from about $ 300,000 in 1996 to $ 3.3 million last year.
“Organizer. Social media geek. General communicator. Bacon scholar. Proud pop culture trailblazer.”