Warren Buffett revealed his succession plan in an interview that will be aired on US national television this weekend.
According to Berkshire Hathaway CEO and Executive Chairman, his son Howard Buffett will keep the legacy of the Buffett family running after his death. However, this is not a royal transfer of inheritance; Buffett Sr.’s son will only be a non-executive chairman
of the company to overlook the operations. The non executive post is an unpaid position that will only be offering Howie with a physical presence at the Omaha-based head office.
“You worry that somebody will be in charge of Berkshire that uses it as their own sandbox in some way,” Buffett explained.
“That changes the way that decisions are made in reference to the shareholders. The odds of that happening are very, very, very low, but having Howie there adds just one extra layer of protection.”
The new position has been opened with a free consent of the current board of directors at Berkshire Hathaway and it will only be filled at time of Warren’s death. The only responsibility Howie, as he is known in the family, will have is to offer a Buffett-presence
in the organization.
“He won’t leave until he’s buried in the ground,” Howard said of his dad, who is healthy at age 81.
Howard will not have any say in day-to-day activities and will not take part in the strategies, Warren clearly told the media. He will keep his day job as a farmer.
The stock market price did not respond to the announcement made by the Buffett family, mainly due to the unpaid role in the succession. The share business concluded well at over a $100,000 a share with 0.42% profit.
Warren Buffett’s long time assistant Debbie Bosanek said in an interview that Howard’s role in the organization will be one-third of Warren’s. The main actor in the business will be CEO who will be decided by the BOD as usual.