Two-thirds of Buffett's pay spent on security
With a total compensation of just $520k from Berkshire Hathaway, nearly $350k goes to personal protection
Either Warren Buffett’s fans are a little wacky, or Omaha isn’t the pastoral Midwest city most people think it is.
According to public documents from Buffett’s Omaha-based Berkshire Hathaway (BRK-A), the company spends a hefty $344,490 on personal and home security for America’s favorite investor in 2009. That’s about twice the regular compensation of $175,000 a year that Berkshire pays Buffett.
This was just one of several startling revelations in Berkshire Hathaway’s latest document mailed to shareholders this week.
Another interesting tidbit is that Berkshire’s CFO saw a bigger raise than Buffett and a bigger overall payday. Specifically, Chief financial officer, Marc Hamburg, saw his compensation grow 11%, to $874,750 in 2009. Buffett's total compensation grew about 6%, to $519,490 last year.
Another interesting tidbit: Hamburg's pay is dramatically less than the executives at some of Berkshire's subsidiaries, such as Geico and BNSF railroad.
Overall Berkshire Hathaway book value was up 19.8% to $21.8 billion in 2009. The fact that its top executives saw a smaller jump in their personal compensation is an interesting factoid.
Obviously, standard compensation is not where Buffett makes the bulk of his cash. In According to the latest Forbes list of the richest people in the world, the oracle of Omaha saw his net worth jump $10 billion in past 12 months on surging Berkshire Hathaway shares. He also shrewdly invested $5 billion in Goldman Sachs and $3 billion in General Electric amid 2008 market collapse, seeing a great return on his investment.
Compared to those gains, the pittance paid from Berkshire as salary doesn’t make much of a difference. But wouldn’t you just love the idea of tapping into Warren Buffett’s brain for a mere $500,000 a year?
- 7 InvestorPlace Experts Offer Top Stocks for March
- 5 Small Cap Stocks Taking the World by Storm
- Top 10 Dow Dividend Stocks
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The company is scrambling to protect its equities arm, which could face declining volume and revenue as competitors close the gap.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.