Warren Buffet on Hiring and Compensation
At Berkshire-Hathaway, Warren Buffett has more than 70 different companies reporting to him. As he describes it, he serves as the board of directors and compensation committee for each of their CEO’s. These businesses are all very different, ranging from selling candy, to managing a fleet of private aircraft, to marketing insurance products. In the face of this complexity, Buffett distributes to his CEO’s just one company-wide memo every two years. And while he could include advice or set policies in business disciplines like marketing, accounting or financial management, instead the entire piece is about ethical standards and the importance of protecting and maintaining Berkshire’s reputation.