Bill Gates Collects $1,800 At Buffett’s Berkshire

Warren Buffett, the second richest American and chairman of $250 billion conglomerate Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) paid Bill Gates a meager $1,800 in board fees for his service to Berkshire in 2012, according to an SEC filing. Compare that with the Microsoft Corporation (NASDAQ:MSFT) co-founder’s net worth of $67 billion. That means his fee as a board member of Berkshire Hathaway was 0.000003 percent of his net worth.

Warren Buffett and Bill gates

Bill Gates’ fee is still lower than an average American family’s net worth of $80,000. Of course, Mr. Gates isn’t doing it for the money. Warren Buffett has pledged to donate most of his assets to Bill & Melinda Gates Foundation. Buffett and Gates are longtime friends.

As for Warren Buffett himself, the Oracle of Omaha received a salary of  $100,000 in 2012, unchanged for over 30 years. Of which, Buffett reimburses $50,000 to Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) for “minor items such as postage or phone calls that are personal.” Berkshire board members were paid  between $1,800 and $5,800 in fees for 2012. The average board fee for S&P 500 companies was $241,000 in 2011, according to Equilar, an executive compensation firm.

Buffett’s total compensation for the last year was $423,923, far less than what the chief executives of other high-profile companies receive. Of that, Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) spent $323,923 on Buffett’s security. The security expenses were lower than in 2011. Last year, Buffett didn’t earn the director’s fee from Washington Post Co. that caused a 14 percent decline in his total compensation. Berkshire has a large stake in Washington Post Co., so the board fee was counted towards Buffett’s compensation from Berkshire. Buffett, whose net worth is estimated to be $53.5 billion get a vast majority of his income from his investment portfolio.

Warren Buffett’s longtime friends and Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) vice chairman Charlie Munger, too, received a salary of $100,000. Berkshire Hathaway Inc. chief financial officer Marc Hamburg earned a salary of $1.03 million, up 6 percent from 2011. Marc Hamburg’s total compensation was $1.04 million, according to the filing.

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