Esset Koyal Group Capital Management Buffett's Advice: Don't complain about your salary

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Esset Koyal Group Capital Management Buffett's Advice: Don't complain about your salary

Post by Admin on Mon Mar 16, 2015 9:08 pm

Warren Buffett has an important piece of advice for the future leader of his empire in his annual letter to shareholders: You'll get rich anyway so don't mind a USD 100,000 salary.

As chairman of the company for five decades now, Buffett wrote in his letter to Berkshire Hathaway's stockholders, "He can't help but earn money far in excess of any possible need for it. But it's important that neither ego nor avarice motivate him to reach for pay matching his most lavishly compensated peers, even if his achievements far exceed theirs."

In the same letter, Buffett also explained, for the benefit of the next leaders, the risks of too much bureaucracy and arrogance. He emphasized as well the dangers of not putting the company first. On the other hand, he pointed out the advantages of a decentralized corporation -- all the more reason to take care of shareholders.

According to the second-richest man in the US, the CEO's attitude will greatly affect the employees under him and the firm's stockholders so it's important that he shows he values them.

"No one can replicate Warren Buffett, you can't find someone to be him. What you need to do is find someone who carries the same values and principles and philosophy to investing," said Gary Goldstein of Whitney Partners, an executive-search company.

Esset Koyal Group Capital Management reports that Buffett apparently expects his managers to be largely driven by accumulating performance-based earnings instead of their base pay. Buffett's own salary remains at USD 100,000 since he started a couple of decades ago, along with Vice Chairman Charles Munger. The bulk of his wealth is mostly in the form of shares amounting to over USD 70 billion, which is second to Microsoft's Bill Gates.

"The compensation questions for the board are really not too important today. They could be important in the future, because it's unlikely the next CEO at Berkshire is going to have the same arrangement that Warren and Charlie do," noted a director from Berkshire.

Meanwhile, the 84-year-old billionaire seems to be fine with offering huge bonus payments to their growing utility and insurer units. For instance, the chairman of Berkshire Hathaway Energy received almost USD 12 million in bonus last year. Another example is their Chief Financial Officer who got half a million dollars of performance bonus due to a successful business acquisition last year. Esset Koyal Group Capital Management learned that it involved the purchase of Van Tuyl Group, an automotive retailer with various branches across 10 states, for their Automotive division.

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Re: Esset Koyal Group Capital Management Buffett's Advice: Don't complain about your salary

Post by kevincraver on Mon Mar 16, 2015 10:34 pm

I dont get it, how's the 2nd richest guy in the world only getting 100,000 salary? Someone pls do the math for me.

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Re: Esset Koyal Group Capital Management Buffett's Advice: Don't complain about your salary

Post by simonhogan on Tue Mar 17, 2015 2:36 am

kevincraver wrote:
I dont get it, how's the 2nd richest guy in the world only getting 100,000 salary? Someone pls do the math for me.

Of course most of his wealth are calculated from his investments. You know, stocks and stuff.

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Re: Esset Koyal Group Capital Management Buffett's Advice: Don't complain about your salary

Post by baileycoburn on Tue Mar 17, 2015 6:33 pm

I could live like a king myself with a 100k salary. Buffett should just give away his wealth since he couldn't possibly spend all that on his own.

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Re: Esset Koyal Group Capital Management Buffett's Advice: Don't complain about your salary

Post by iamlorraine08 on Tue Mar 17, 2015 10:49 pm

Idk but I personally support buffett more than gates... His investment strategies just show how talented he is in what he does, not that im saying it's not cool to be Microsoft's founder... But still…

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Re: Esset Koyal Group Capital Management Buffett's Advice: Don't complain about your salary

Post by luvhallie1991 on Wed Mar 18, 2015 2:41 am

iamlorraine08 wrote:
Idk but I personally support buffett more than gates... His investment strategies just show how talented he is in what he does, not that im saying it's not cool to be Microsoft's founder... But still…

Yeah, but gates is the one who's big on charity and donations, which i think is a great way to help out.

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Re: Esset Koyal Group Capital Management Buffett's Advice: Don't complain about your salary

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