Buffett has said that huge compensation distorted incentives on Wall Street, but that doesn’t stop him from paying his own employees very handsomely, says Bloomberg.Buffett says he wants his employees to feel like owners of the company — and these numbers could probably do that for you.
Berkshire gave $17.4 million in 2011 compensation to Thomas P. Nerney, CEO of its United States Liability Insurance Group; $12.4 million to Geico Corp. CEO Tony Nicely and the National Indemnity Co. unit gave $9.26 million to Ajit Jain, according to filings to state regulators. Berkshire, which is set to send its annual-meeting notice to shareholders today, said in last year’s proxy that Buffett’s salary remains $100,000 at his request.
Not bad at all. And as JP Morgan’s CEO Jamie Dimon said, you need that kind of cash to keep the best talent:
“Warren Buffett does an exceptional job,” Dimon…. “I’ll make you a bet he pays his top 20 or 30 people more than we do. We need top talent. You cannot run these businesses with second-rate talent.”
Good call, Jamie.