2023-05-05 03:17:14
The Berkshire Hathaway Annual General Meeting of Shareholders under the leadership of Buffett will be held from May 5th to 6th, Eastern Time. Shareholders will vote on 6 shareholder proposals, including voting on whether to remove Buffett as chairman Buffett advised shareholders to cast a “no” vote on all of these proposals.
The Berkshire Annual Shareholders Meeting was held in Omaha, Nebraska. Warren Buffett and his old partner Charlie Munger will appear again. This is the 59th meeting that Buffett has participated in. It is expected that tens of thousands of shareholders will go to the “.
In addition to assessing Berkshire’s performance and participating in the 6-hour question-and-answer session between Buffett and Menger, investors will also vote on 6 shareholder proposals over the weekend.
While Berkshire has significantly outperformed other companies in the S&P 500 over the past 1, 3, 5, 10 and 20 years, some shareholders have called for Buffett to be removed as chairman. In addition, there are shareholder proposals asking the company not to get involved in political disputes. And Buffett advised shareholders to cast a “no vote” on all of these proposals.
Berkshire shareholders are expected to vote on the following six shareholder proposals this weekend:
Proposals 1, 2 and 3 require Berkshire to publish an annual assessment report on how the company manages climate-related physical and transitional risks and opportunities, disclose how the company manages climate risk, and how the company plans to help measure and reduce emissions, to comply with the Paris Climate Agreement.
This was proposed by various shareholders such as CalPERS. Berkshire’s response: “Several Berkshire companies have reported their greenhouse gas emissions data and discussed climate-related risks and opportunities in their official website reports, and climate-related risks and opportunities are addressed at the operating company level , and is considered by the board of directors and audit committee simultaneously with corporate and shareholder risks, and at the same time taking into account the company’s individual contribution to Berkshire’s consolidated net profit.”
Proposition 4, which calls for Berkshire to report to shareholders on the effectiveness of the company’s diversity, equity and inclusion efforts, was initiated by Whistle Stop Capital’s Meredith Benton on behalf of Myra K. Young.
Berkshire’s response: “Berkshire’s commitment to diversity, equity and inclusion, and the effectiveness of the company’s related programs, begins with our leaders, including our Board of Directors, four of whom are women and two of of a different race or nationality.”
In Proposal 5, Berkshire is required to separate the roles of CEO and chairman, and Buffett resigns as chairman. This is a proposal from the National Law and Policy Center (NLPC).
Berkshire responded: “Buffett currently holds 31.5% of the voting rights in Berkshire. The board believes that as long as Buffett is the CEO of Berkshire, he should continue to serve as chairman and CEO of Berkshire. However, as Buffett has done in the past As stated last time, once Buffett is no longer CEO, a non-management director should be appointed as chairman of the board.”
Proposition 6 requires Berkshire to undertake that its portfolio companies refrain from supporting or taking public positions on any controversial social or political issues. This is proposed by the US Conservative Value ETF.
Berkshire’s response: “Berkshire manages its operating businesses in an unusually decentralized manner, with minimal involvement in the day-to-day activities of these businesses. The Board believes that, given Berkshire’s longstanding business model, each business is independently Responsible for implementing policies, programs, and outcomes that support its business strategy, Berkshire’s culture dictates that leaders’ public communications must be proactive, comprehensive, and unbiased in acting on underlying business strategies, emergencies, and priorities, which is consistent with The Berkshire (BRK.B-US) culture doesn’t fit.”
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