He said the good intentions didn’t work – they backfired.
“Based on the majority of my observations – the CEO of company ‘A’ looked at his competitor at company ‘B’ and subtly conveyed to his board that he should be worth more. Of course, he also boosted the pay of directors and was careful who he placed on the compensation committee. The new rules produced envy, not moderation.
A Squishmallow plush toy depicting Berkshire Hathaway chief executive Warren Buffett.Credit: Bloomberg
“The ratcheting took on a life of its own. What often bothers very wealthy CEOs – they are human, after all – is that other CEOs are getting even richer. Envy and greed walk hand in hand. And what consultant ever recommended a serious cut in CEO compensation or board payments?”
Another message from Buffett was to appreciate the fickle working of luck in longevity. And even a nod to the inherent privilege that he enjoyed.
“As Thanksgiving approaches, I’m grateful and surprised by my luck in being alive at 95. When I was young, this outcome did not look like a good bet. Those who reach old age need a huge dose of good luck, daily escaping banana peels, natural disasters, drunk or distracted drivers, lightning strikes, you name it,” he said.
“I was born in 1930 healthy, reasonably intelligent, white, male and in America. Wow! Thank you, Lady Luck.”
As he signed off his last letter as chief executive, Buffett bestowed his central piece of advice – and spoiler alert, it wasn’t about business.
“Decide what you would like your obituary to say and live the life to deserve it,” he said.
“Greatness does not come about through accumulating great amounts of money, great amounts of publicity or great power in government. When you help someone in any of thousands of ways, you help the world. Kindness is costless but also priceless.”
