Does Warren Buffett deserve a pay rise? The Berkshire Hathaway CEO’s annual salary stayed at just US$100,000 for the past 40 years – but he enjoys other perks too
- He’s the sixth-richest person on the planet with a net worth of US$95 billion – so why didn’t billionaire Warren Buffett ever ask for a pay rise?
- He breakfasts at McDonald’s and his annual salary hasn’t changed since it was set at US$100,000 in 1980 – a fraction of S&P 500 CEOs’ US$15 million average
Warren Buffett is a legendary investor, leads one of the world’s biggest companies, and has ranked among the world’s wealthiest people for decades. Yet he earns a modest annual salary of US$100,000 – and hasn’t had a pay rise in 40 years, US government filings show.
Buffett doesn’t earn much from other sources, either. He netted double his salary in annual directors’ fees in the 1990s and early 2000s, before he resigned as a director of The Washington Post Company and stepped down from other corporate boards.
The highest total compensation he’s ever received at Berkshire was US$525,000 in 2010, comprising his US$100,000 salary, US$75,000 in directors’ fees and US$350,000 allocated to his security costs.
Berkshire spends far more on Buffett’s personal and home security than it pays him directly. Keeping the boss safe has cost the company an average of US$339,000 a year since 2008, or US$4.4 million in total.
Buffett isn’t in desperate need of a big salary. He owns roughly US$100 billion of Berkshire stock – which he’s gradually giving away – and doesn’t spend much: he lives in a modest family home, drives a basic car, and eats breakfast at McDonald’s.
