Waren Buffett is very synonymous with Berkshire Hathaway Inc., but there are rumors that the chairmanship he held from 1965 will be replaced at the annual meeting to be held on April 30.
The matter was highlighted by the California Public Employees' Retirement System (CalPERS), the largest public pension fund in the United States (US), which suggested shareholders vote to replace the chairmanship held by Buffett, but retain his position as Chief Executive Officer (CEO). .
The proposal was made by CalPERS, which has invested US $ 450 billion including $ 2.3 billion in shares in Berkshire, as it feels the roles of CEO and chairman are ‘no fine line’ when one holds both.
Berkshire has so far not issued any further statement to confirm the matter, however, the conglomerate is expected to reject the proposal put forward by CalPERS.
According to Berkshire Vice Chairman Greg Abel, Howard Buffett the son of Waren is planned to take over as non -executive chairman after his father’s departure.
He added that someone outside the management should be the chairman after Buffett's departure but the millionaire must remain as chairman and CEO.
It is common knowledge that Buffett controls 32% of Berkshire’s voting power by owning as much as 16% of the company’s shares and any proposals by previous shareholders are sure to meet with failure by a large margin.
Meanwhile, Insightia reports CalPERS supports U.S. directors by 72% in 2021.
