Posted on 03/05/2006 1:01:15 PM PST by soccer_maniac
"Too often executive compensation in the U.S. is ridiculously out of line with performance," said Buffett in his 2005 letter.
"Huge severance payments, lavish perks and outsized payments for ho-hum performance often occur because comp committees have become slaves to comparative data." Buffett said compensation committee members are bombarded with pay statistics and told about new perks that other managers are receiving. "In this manner, outlandish 'goodies' are showered upon CEOs simply because of a corporate version of the argument we all use as children: 'But, Mon, all the other kids have one.'" The billionaire investor, known as the Oracle of Omaha, also had a few choice words for rising fees paid out to professional money managers. "These costs are now being incurred in amounts that will cause shareholders to earn far less than they historically have," said Buffett.
(Excerpt) Read more at berkshirehathaway.com ...
the socialist oracle hypocrite speaks
ping.
OK, let me speak as a capitalist.
As a stockholder, I am the owner of the company. The CEO is an employee, and an expense. I don't see why I shouldn't want to hire someone who could do a good job, but is willing to accept a lower salary. That's the capitalist system, shop around and get the best deal.
These guys are not the great geniuses they claim to be. There are many guys makeing $300-500K now who could do just as good a job. If it was up to me, I'd hire one and give him a chance.
I agree with everything you said, I just can't stand buffet and his do as I say and not as I do
bump
I own many stocks. I have not been asked how much I think the CEO should be paid.
Give it a break will you. The man knows business inside and out and that is the manner in which he is speaking. He is damn right in what he says about executive pay.
You'd sing a different tune if you bought Berkshire Hathaway in 1966.
I'm not surprised those who did have made Buffett a god.
What's needed is for the mutual-fund managers and other institutionals (who own the bulk of shares now) to exercise greater control over the boards
You would sing differently if you ever worked for one of his companies, nepotism, company store galore
I've been to his restaurant in Key West - "Margaritaville". :)
wrong Buffet :)
JP Morgan would never pay any plant manager more then 20 times what the lowest paid person in the plant made.
"You'd sing a different tune if you bought Berkshire Hathaway in 1966."
Or even 15 years ago.
Actually Buffet pays himself 100,000 a year. He lives in a middle-class neighborhood, (no big estate with fancy gates-it is actually on a busy street) his kids went to public schools.
I live in the same neighborhood and went to the same schools with his daughter. His sister taught Home-
ec. I live across the street from the home where he grew up
I agree that his politics are left wing wacko but on this you are wrong
Two days ago media reports that this loser lost 1.8 BILLION DOLLARS last year. Yep, he is a damn sage!
LLS
I guess its OK to earn your billions investing, but not working? I don't see Warren giving his earinings back.
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