By Erik Holm
March 13 (Bloomberg) -- Warren Buffett, the world’s second- richest man, received a $100,000 salary for the 28th consecutive year in 2008 as Berkshire Hathaway Inc. posted the worst annual results of his tenure. He received no bonus.
Berkshire this month said book value per share, a measure highlighted on the first page of the Omaha, Nebraska-based company’s annual report, fell for the second time since he wrested control of the company four decades ago. Buffett gets no stock options or grants for serving as chief executive officer and chairman, Berkshire said in a regulatory filing today.
Buffett, 78, built the once-failing textile manufacturer into a $130 billion investment and holding company with businesses from ice cream and candy stores to insurance and corporate jet leasing. He is Berkshire’s largest shareholder, and has pledged the bulk of his stake to the Bill & Melinda Gates Foundation and four family charities.
Buffett ranked second behind Gates, the co-founder of Microsoft Corp. and a member of Berkshire’s board, in Forbes magazine’s annual ranking of the world’s billionaires released this week. Buffett’s wealth decreased by $25 billion to $37 billion in the 12 months since Forbes magazine last updated its rankings.
Berkshire spent $315,709 on bodyguards and home security for Buffett, the filing said. Buffett earned $75,000 in 2008 for serving on the boards of companies in which Berkshire has stakes, matching his compensation for those services from the prior year.
Reimbursements
Buffett sets pay for Vice Chairman Charles Munger, 85, who also again earned a $100,000 salary, and Chief Financial Officer Marc Hamburg, who earned $775,000, an 8.8 percent salary raise from 2007. Buffett also determines the pay for managers of Berkshire’s operating units.
“Mr. Buffett does not anticipate Mr. Munger’s compensation will be increased in the future,” the regulatory filing said.
Berkshire has had a compensation committee since 2004. Prior to that, Buffett recommended his own salary to the board. He reimbursed Berkshire $50,000 last year to cover any personal use of Berkshire postage, phones and personnel, the filing said. Munger paid Berkshire $5,500 for those services.
Gates, whose net worth was estimated by Forbes at $40 billion, and other members of Berkshire’s board of directors earned $2,700 to $6,700 for their work.
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