CalPERS to vote to replace Buffett as Berkshire chairman
(Reuters) – CalPERS, the most important U.S. public pension fund, on Tuesday mentioned it is going to vote for a shareholder proposal that Berkshire Hathaway Inc change Warren Buffett as chairman, although he would stay chief government officer.
The fund, whose full title is the California Public Workers’ Retirement System, disclosed its vote in a regulatory submitting forward of Berkshire’s scheduled April 30 annual assembly in Omaha, Nebraska.
CalPERS mentioned it invests greater than $450 billion, together with greater than $2.3 billion in Berkshire shares.
Berkshire didn’t instantly reply to a request for remark.
In proposing to put in an unbiased chair at Berkshire, the nonprofit Nationwide Authorized and Coverage Middle mentioned the roles of CEO and chairman are “drastically diminished” when one particular person holds each.
Berkshire opposes the proposal. It has mentioned somebody outdoors administration must be chairman after Buffett is now not in cost, however that the billionaire ought to stay chairman and CEO.
Buffett, 91, has run Berkshire since 1965.
Berkshire plans for Buffett’s son Howard Buffett to change into non-executive chairman after his father’s departure, whereas Vice Chairman Greg Abel is slated to change into CEO.
Shareholder proposals that Berkshire opposes are typically defeated by massive or overwhelming margins.
Buffett not too long ago managed about 32% of Berkshire’s voting energy, whereas proudly owning about 16% of its inventory.
CalPERS mentioned it is going to additionally vote for shareholder proposals that Berkshire report on its plans to cut back greenhouse gases and enhance variety, and its personal proposal that Berkshire report on its plan to deal with local weather threat.
Berkshire opposes these proposals.
CalPERS additionally plans to withhold votes to reelect administrators Susan Decker and Meryl Witmer due to an absence of disclosures associated to local weather change.
The fund backed U.S. firm administrators 72% of the time in 2021, in accordance with the analysis agency Insightia.
(Reporting by Jonathan Stempel in New York; enhancing by Bernard Orr)
