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Buffett rejects shareholder proposals, Olson steps down as director of Berkshire Hathaway

Berkshire Hathaway announced on Friday that longtime director Ronald Olson would be leaving the board due to a new policy requiring all directors except Warren Buffett to step down when they reach 80.

In its proxy statement for the company's annual meeting on May 3, in Omaha, Nebraska Berkshire said that its board had unanimously recommended rejecting seven shareholder proposals. This included three regarding its subsidiaries' anti-discrimination and diversity efforts.

Berkshire said Buffett will also receive $405,111 by 2024. This includes his $100,000 salary plus personal security and home protection.

Vice Chairman Greg Abel and vice chairman Ajit Jain, who are expected to succeed Buffett in the role of chief executive, saw their compensation increase from $1 million to $21 millions each.

Abel, 62 years old, is in charge of non-insurance companies such as BNSF Railroad and Berkshire Hathaway Energy. Jain, 73 years old, is in charge of insurance businesses like Geico auto insurance.

Olson, 83, has been a Berkshire Director since 1997. He is a partner in the law firm Munger, Tolles & Olson.

The new age limit set by Berkshire Corporate Governance Guidelines has forced him to leave the 14-member Berkshire board. The other directors, except for Buffett, are all 75 years old or younger.

Olson has not responded to comments immediately.

Buffett's age is not a factor because he has 30.3% voting power in Berkshire, which triggers an exception.

The 94 year old billionaire owns approximately 14.4% of Berkshire. If the independent directors wanted him to, he could continue to be a director after retiring.

Shareholder resolutions include conservative investor proposals that Berkshire Report on its race-based initiatives and how it affects employees' employment based on race and color, religion, sex and national origin.

Berkshire’s board said that both reports were unnecessary. It stated that subsidiaries had their own policies, and “Berkshire’s approach is straightforward - do what's right and follow the law."

The board opposed the proposal to create a diversity and inclusion committee, stating that its audit committee oversees all diversity issues.

The company also argued that a proposal for independent directors to oversee the risks associated with artificial intelligent was unnecessarily and incompatible with Berkshire’s decentralized culture.

(source: Reuters)