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Replying to @Molson_Hart @valueterminal
For 2 Buffett mentions they get paid based on certain key meterics for their specific business (ie GEICO based on float and combined ratio)
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Replying to @Value_Quant @valueterminal
All salary and bonuses, no stock options right? Buffett must be a genius to know the KPIs for all of the different businesses he owns.
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Replying to @Molson_Hart @valueterminal
Stock options on BRK wouldn’t make sense since managers only control their own businesses, not the performance of BRK or random market fluctuations.
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On the other hand for his PMs (Todd and Ted), a portion of their comp (I think it’s 10-20%) comes from the performance of the other guy with the rest coming from their own. To encourage cooperation between them
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Molson Hart Retweeted Hilton Hart
Makes sense. This is a good explainer from Buffett on the topic which is consistent with what you're saying:https://twitter.com/realHiltonHart/status/1161725636572045312 …
Molson Hart added,
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