Berkshire Shareholders Reject Diversity, AI Proposals Amid Leadership Transition

Shareholders of berkshire hathaway inc. recently voted down several proposals related to diversity, artificial intelligence, and other corporate governance issues. Among the seven proposals presented, one required the company to report on the risks associated with its subsidiaries' actions based on race. Another proposal sought to mandate Berkshire to report on how its business practices impact employees based on various demographic factors, including race, color, religion, gender, nationality, and political views.

Additional rejected proposals included the establishment of a board committee to oversee diversity and inclusion matters, the oversight of AI-related risks by independent directors, and the submission of a report on "voluntary" environmental activities that exceed federal and state regulations. These voting results came after Warren Buffett's announcement that he plans to step down as Berkshire's CEO by the end of the year. Greg Abel, the current Vice Chairman, will succeed Buffett and presided over the reading of the shareholder proposals during the meeting.

Buffett, who controls approximately 30% of Berkshire's voting power, along with other Berkshire directors, opposed all seven proposals. They deemed these proposals unnecessary and, in some cases, contrary to the company's decentralized culture. The board emphasized that Berkshire's operating companies independently develop policies regarding race and other employment factors, adhering to the company's overall policy of "obeying the law and doing the right thing."

This decision by Berkshire's shareholders reflects a broader trend in the corporate world, where many companies have scaled back their public support for workplace diversity, equity, and inclusion initiatives. This shift is partly driven by conservative figures, including Donald Trump, who have pushed for restrictions on diversity, equity, and inclusion (DEI) initiatives in the private sector. Berkshire's annual report generally discusses the hiring practices of its operating companies, but its latest report, released in February, removed references to "diversity and inclusion in the workforce" as a hiring goal.

During the meeting, Berkshire's shareholders also re-elected all eligible directors, including Buffett and Abel. This re-election underscores the shareholders' confidence in the current leadership and their approach to corporate governance. The voting results and the subsequent re-election of directors highlight Berkshire's commitment to its decentralized culture and its focus on legal compliance and ethical business practices.