BERKSHIRE HATHAWAY INC
For the period ended May 3, 2025. Filed Mar 14, 2025.
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May 3, 2025 · Filed Mar 14, 2025
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Contents
PAY VERSUS PERFORMANCE TABLE
| Year | Summary(1)CompensationTable Total for PEO ($) | Compensation(1) Actually Paid to PEO ($) | Average(1)SummaryCompensationTable Total for Non-PEO NEOs ($) | Average(1)CompensationActually Paid to Non-PEO NEOs ($) | Value of Initial Fixed $100 Investment Based on: | Net(4)Earnings($ in billions) | Company(5) Selected Measure |
|---|---|---|---|---|---|---|---|
| Total(2)Shareholder Return ($) · Peer Group(3) Total Shareholder Return ($) | |||||||
| 2024 | 405,111 | 405,111 | 15,371,849 | 15,371,849 | 200.51 | 227.67 | 89.6 |
| 2023 | 413,595 | 413,595 | 10,996,615 | 10,996,615 | 159.79 | 168.05 | 97.1 |
| 2022 | 401,589 | 401,589 | 10,428,782 | 10,428,782 | 138.01 | 151.66 | (22.0) |
| 2021 | 373,204 | 373,204 | 10,364,000 | 10,364,000 | 132.71 | 127.58 | 90.9 |
| 2020 | 380,328 | 380,328 | 10,348,188 | 10,348,188 | 102.42 | 106.96 | 43.3 |
| (1) | Warren E. Buffett was the named Principal Executive Officer (“PEO”) for each of the five years included in the Pay Versus Performance Table (“Table”). Gregory E. Abel, Ajit Jain and Marc D. Hamburg were named executive officers (“NEOs”) for each of the five years included in the Table. Charles T. Munger, former Vice Chairman who died on November 28, 2023, was a NEO between 2020 and 2023. |
| (2) | Represents the cumulative total return on $100 invested in Berkshire Common Stock on December 31, 2019 as of December 31 of each year listed in the Table. |
| (3) | It is difficult to identify a Berkshire peer group. Berkshire uses the S&P 500 Property & Casualty Index in preparing its performance graph as required by Item 201(e) of Regulation S-K. Accordingly, that index is utilized for purposes of preparing the Table. |
| (4) | Under existing Generally Accepted Accounting Principles, unrealized gains and losses on equity security investments are required to be included in earnings. Accordingly, due to the large size of Berkshire’s equity investment portfolio and the volatility in equity markets there can be significant volatility in Berkshire’s periodic net earnings. |
| (5) | Berkshire does not use any financial performance measure in setting the compensation of its PEO or NEOs. |
As disclosed in the Compensation Discussion and Analysis section of this proxy statement, the annual base compensation of Berkshire’s PEO (Warren Buffett) has been $100,000 for more than 40 years. Excluding Mr. Munger whose total annual compensation was $100,000 in each of the four years ending December 31, 2023, the average
Non-PEO
compensation increased 11.7% during the five years ended December 31, 2024. During the same five-year period, Berkshire’s total shareholder return was 100.5% or 14.9% compounded annually.
Table of Contents
Berkshire does not believe that comparing compensation actually paid to its PEO and the average compensation actually paid to its NEOs to Berkshire’s net earnings is meaningful due to the volatility in its net earnings caused by the GAAP requirement to include the annual changes in unrealized appreciation of Berkshire’s significant equity investment portfolio in its net earnings.
The additional information which follows is being presented on a supplemental basis to the disclosure in the preceding paragraph that is required by Regulation
S-X
Item 402(v)(5)(ii). Berkshire’s management and its Board members believe that Berkshire’s net operating earnings which is defined as Berkshire’s net earnings attributable to Berkshire Hathaway shareholders less its net realized and unrealized investment gains/losses is a more useful measurement. In that regard net operating earnings were $21.9 billion in 2020; $27.6 billion in 2021; $30.8 billion in 2022; $37.4 billion in 2023; and $47.4 billion in 2024, which grew 164% over the past five years.
As described in Berkshire’s 2024 Annual Report on Form
10-K,
it would be difficult to develop a peer group of companies similar to Berkshire. The Company owns subsidiaries in a number of diverse business activities of which the most important component is the property and casualty insurance business. Accordingly, Berkshire used the Standard & Poor’s Property-Casualty Insurance Index as Berkshire’s peer group in the Table. As indicated in the Table, an investment of $100 in Berkshire at December 31, 2019 would be worth $200.51 at December 31, 2024, whereas the same investment in the S&P Property-Casualty Insurance Index at December 31, 2019 would be worth $227.67 at December 31, 2024. It should also be noted that an investment of $
in the S&P 500 Index at December 31, 2019 would be worth $
197.02
at December 31, 2024.
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