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Member, Beacon International Group, Ltd.
OMAHA, Neb.—Berkshire Hathaway Inc., as part of its unique culture, does not carry directors and officers liability insurance for its directors, Chairman Warren Buffett said in his annual letter to shareholders.
In the letter issued Friday, Mr. Buffett said Berkshire's advantages include its “hard-to-duplicate” culture.
“To start with, the directors who represent you think and act like owners,” he said in the letter. “They receive token compensation: no options, no restricted stock and, for that matter, virtually no cash. We do not provide them directors and officers liability insurance, a given at almost every other large public company.
“If they mess up with your money, they will lose their money as well. Leaving my holdings aside, directors and their families own Berkshire shares worth more than $3 billion,” Mr. Buffett said in the annual letter. “Our directors, therefore, monitor Berkshire's actions and results with keen interest and an owner's eye. You and I are lucky to have them as stewards.”
The life and personality of investor Warren Buffett are portrayed clearly in a more-than-800-page, expansive and thorough biography, "The Snowball: Warren Buffett and the Business of Life."