World’s newly crowned richest person Warren Buffett may have some lessons for other billionaires and CEOs of the world.

Buffett, CEO and Chairman at Berkshire Hathaway, does not use an office car, has neither taken a salary hike for 25 years nor desires any in future, pays back the company for minor items such as phone calls, postage and favour from office personnel that are personal in nature, does not fly in company jet for personal visits and gives over four-times bigger pay package to his Chief Financial Officer.

These disclosures are part of Buffett-run Berkshire Hathaway’s compensation policy as mentioned in a notice being sent to its shareholders for their annual meeting on May 3.

Besides, Berkshire said all the compensation would be deductible under tax laws, and the company’s profits or market value would never be a yardstick for any remuneration.

He said its compensation scheme is different from most of the public companies. Buffett’s annual salary has been at 100,000 dollars for 25 years and he has conveyed that “he would not expect or desire it to be increase in the future.”

The amount of his compensation was recommended to the company’s board of directors by himself.
Berkshire Vice-Chairman Charles Munger has also been paid an annual salary of 100,000 dollars for 25 years and Buffett does not anticipate any hike in Munger’s package as well in the future.

“Both Buffett and Munger would on occasion utilise Berkshire personnel or have Berkshire pay for minor items such as postage or phone calls that are personal,” the company said in a statement to shareholders.

But, the two would reimburse the company for these costs through an annual payment that is equal to or greater than the costs that Berkshire has incurred on their behalf.

During 2007, Buffett reimbursed Berkshire 50,000 dollars and Munger reimbursed Berkshire 5,500 dollars.