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Buffett Criticizes Executives Excessive Pay Packages
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Commodity Spread Trading (AXcess News) Washington - Veteran billionaire entrepreneur, Warren Buffett, seized the opportunity in his infamous annual letter to Berkshire Hathaway (NYSE: BRK-A, BRK-B) shareholders to slam executives excessive pay and perk packages.
"Too often executive compensation in the US is ridiculously out of line with performance," theOracle of Omahasaid, criticizing the way executive compensation is set.
"Huge severance payments, lavish perks and outsized payments for ho-hum performance often occur because comp committees have become slaves to comparative data.
''In this manner, outlandish 'goodies' are showered upon CEOs in a corporate version of the argument we all use as children: 'But, Mom, all the other kids have one'.''
Buffett sparked speculation about his successor by writing thatBerkshire Hathaway'sboard had unanimously decided who should succeed Buffett.
The 75-year-old Buffett remains energetic and healthy and still enjoys what he does, so even though the board has picked his successor doesn't mean Buffett is retiring any time soon.
Buffett told shareholders in his letter Saturday that Berkshire's net worth grew by $5.6 billion in 2005. That increased the book value of both classes of Berkshire stock 6.4 percent, beating the S&P gain of 4.9 percent for the year.
Buffett reiterated his concern that executive compensation is often "ridiculously out of line with performance."
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Nfl Betting Spread Buffett devoted nearly two pages to his criticism of CEO pay which can be especially heinous when executives are dismissed.
The Office of Fair Trading (OFT) is targeting credit card companies in its bid to clamp down on excessive default charges.
Advanced Commodity Spread "Getting fired can produce a particularly bountiful payday for a CEO," Buffett wrote. "Indeed, he can earn more in that single day, while cleaning out his desk, than an American worker earns in a lifetime of cleaning toilets. Forget the old maxim about nothing succeeding like success: Today, in the executive suite, the all-too-prevalent rule is that nothing succeeds like failure."
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Betting Exchange Spread Berkshire Hathaway's annual meeting, which Buffett likes to call "Woodstock for Capitalists," will be held on May 6.
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