CalPERS, The largest public pension fund in the United States said on Tuesday it would vote in favor of a shareholder proposal to replace Berkshire Hathaway Inc. Warren Buffett as chairman, although he will remain chief executive.
The fund, whose full name is the California Public Employees’ Retirement System, revealed its vote in a regulatory vote ahead of Berkshire’s scheduled annual meeting on April 30 in Omaha, Nebraska.
CalPERS said it is investing more than $ 450 billion, including more than $ 2.3 billion in Berkshire shares.
Berkshire did not immediately respond to a request for comment.
Proposing a stand-alone chair in Berkshire, the nonprofit National Legal and Policy Center said the roles of CEO and chairman are “significantly reduced” when one person holds both.
Berkshire opposes the proposal. He has said that someone outside the administration should be president since Buffett is no longer in charge, but that the billionaire should remain president and CEO.
Buffett, the 91-year-old “Oracle of Omaha”, has run Berkshire since 1965.
Berkshire plans for Buffett’s son, Howard Buffett, to become non-executive president after his father’s departure, and Vice President Greg Abel plans to become chief executive.
Shareholders’ proposals that Berkshire opposes are generally defeated by large or overwhelming margins.
Buffett recently controlled about 32% of Berkshire’s voting power and held about 16% of its shares.
CalPERS also said it would vote in favor of shareholder proposals that Berkshire outlines its plans to reduce greenhouse gases and improve diversity and its own proposal for Berkshire to report on its climate management plan. risk.
Berkshire opposes these proposals.
CalPERS also plans not to vote for the re-election of directors Susan Decker and Meryl Witmer due to a lack of notifications on climate change.
The fund backed U.S. corporate executives 72% of the time in 2021, according to research firm Insightia.
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