Frankfurt Warren Buffett and his private equity firm, Berkshire Hathaway, need to do a better job of explaining publicly how the company’s board manages risk. The US Securities and Exchange Commission (SEC) asked the company to do this in September 2022.
The letter was published on Tuesday. The Reuters news agency was the first to report it.
Specifically, Berkshire Hathaway should educate more about the risks taken by Chairman Warren Buffett. Because he is largely responsible for the investments. This involves both current risks and the determination of future risks. The SEC also wants to know why no committee oversees risk management, but the board itself.
In its letter, the SEC also asks whether executive director Buffett can overrule on risks. Former Yahoo President Susan Decker has held this position since September 2021. The function is similar to that of a German supervisory board chairman. Day-to-day operations of Berkshire are managed by vice president Greg Abel and manager Ajit Jain.
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Further
Read on now
Get access to this and every other article in the
web and in our app.
Further