Abstract We compare general corporate governance principles, guidelines and existing legislation relative to business, specifically in the financial industry, with Mr. Warren Buffett's corporate governance principles and applications in his company, Berkshire Hathaway.
Then we consider best practices about leadership succession and compare them with the approach at Berkshire Hathaway. Business succession of Mr. Buffett being an important issue to which a clear path has not been presented publically and has not been confirmed to exist internally, within the company.
Introduction
In the early 60's, Mr. Buffett bought a textile business and transformed it in a holding company of which he became the CEO in 1964. Berkshire Hathaway is a multinational conglomerate, an investment company with ownership of large American companies such as Geico, Fruit of the Loom, and railroad companies, a favorite, with insurance companies, of the founder, Mr. Warren Buffet. The conglomerate also owns partially Heinz, Mars Incorporated, Wells Fargo, IBM and Coca Cola Company. The conglomerate has headquarters in Omaha, Nebraska, USA, …show more content…
currently has a board of directors composed of 14 members, 4 of which are women, this is a 30% representation, we could wish that the Corporate Governance role model is not only perfect in his application and leading position of Corporate Governance application and constant improvement/update and shows the way by electing more women on his board, maybe even a 50% representation. Mr. Buffett has mentioned in his 2014 Letter to Shareholders while talking about future CEO qualities as it is a major subject considering his age and notoriety :"I'm using male pronouns to avoid awkward wording, but gender should never decide who becomes CEO". We may thus hope for a future feminine role ! Interestingly enough, finance is a man's world but has accepted more feminine presence at its top management in the past decade than other
Then we consider best practices about leadership succession and compare them with the approach at Berkshire Hathaway. Business succession of Mr. Buffett being an important issue to which a clear path has not been presented publically and has not been confirmed to exist internally, within the company.
Introduction
In the early 60's, Mr. Buffett bought a textile business and transformed it in a holding company of which he became the CEO in 1964. Berkshire Hathaway is a multinational conglomerate, an investment company with ownership of large American companies such as Geico, Fruit of the Loom, and railroad companies, a favorite, with insurance companies, of the founder, Mr. Warren Buffet. The conglomerate also owns partially Heinz, Mars Incorporated, Wells Fargo, IBM and Coca Cola Company. The conglomerate has headquarters in Omaha, Nebraska, USA, …show more content…
currently has a board of directors composed of 14 members, 4 of which are women, this is a 30% representation, we could wish that the Corporate Governance role model is not only perfect in his application and leading position of Corporate Governance application and constant improvement/update and shows the way by electing more women on his board, maybe even a 50% representation. Mr. Buffett has mentioned in his 2014 Letter to Shareholders while talking about future CEO qualities as it is a major subject considering his age and notoriety :"I'm using male pronouns to avoid awkward wording, but gender should never decide who becomes CEO". We may thus hope for a future feminine role ! Interestingly enough, finance is a man's world but has accepted more feminine presence at its top management in the past decade than other