Since at least 1993, but possibly earlier, Warren Buffett has only collected $100,000 annually to serve as CEO of Berkshire Hathaway. There are good reasons for this, as it bolsters his social and political capital (i.e. he has more perceived moral authority to lecture corporate America on restraining their animal impulses when he’s collecting $100k rather than $100m annually as compensation). There are also economic reasons for this arrangement, as Buffett has owned between 17% and 36% of Berkshire Hathaway stock during this time, and there would be a certain inefficiency in paying himself from an asset where he owns a sizable stake (of course, he would still be more absolutely richer if he had taken such compensation).
Even though there are important reasons why Buffett behaved the way he has regarding his personal compensation, it also remains true that he could have fairly demanded annual compensation of $100 million … Read the rest of this article!