Berkshire Hathaway 2002 Annual Report Download - page 75

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74
On my death, Berkshire's ownership picture will change but not in a disruptive way: First, only about 1% of my
stock will have to be sold to take care of bequests and taxes; second, the balance of my stock will go to my wife, Susan, if
she survives me, or to a family foundation if she doesn't. In either event, Berkshire will possess a controlling shareholder
guided by the same philosophy and objectives that now set our course.
At that juncture, the Buffett family will not be involved in managing the business, only in picking and overseeing
the managers who do. Just who those managers will be, of course, depends on the date of my death. But I can anticipate what
the management structure will be: Essentially my job will be split into two parts, with one executive becoming responsible
for investments and another for operations. If the acquisition of new businesses is in prospect, the two will cooperate in
making the decisions needed. Both executives will report to a board of directors who will be responsive to the controlling
shareholder, whose interests will in turn be aligned with yours.
Were we to need the management structure I have just described on an immediate basis, my family and a few key
individuals know who I would pick to fill both posts. Both currently work for Berkshire and are people in whom I have total
confidence.
I will continue to keep my family posted on the succession issue. Since Berkshire stock will make up virtually my
entire estate and will account for a similar portion of the assets of either my wife or the foundation for a considerable period
after my death, you can be sure that I have thought through the succession question carefully. You can be equally sure that
the principles we have employed to date in running Berkshire will continue to guide the managers who succeed me.
Lest we end on a morbid note, I also want to assure you that I have never felt better. I love running Berkshire, and if
enjoying life promotes longevity, Methuselah's record is in jeopardy.
Warren E. Buffett
Chairman