Berkshire shareholders reject diversity, AI proposals

By Jonathan Stempel

OMAHA, Nebraska (Reuters) -Berkshire Hathaway shareholders on Saturday rejected a resolution requiring the company to report on risks from its subsidiaries’ race-based initiatives, one of seven proposals tied to diversity, artificial intelligence and other issues that were voted down.

Shareholders also voted against a resolution that Berkshire report on how its business practices affect employees based on race, color, religion, sex, national origin and political views.

Also voted down were proposals requiring Berkshire’s board of directors to create a committee to oversee diversity and inclusion, having independent directors oversee AI-related risks, and requiring a report on "voluntary" environmental activities that exceed federal and state requirements.

The votes were announced after Buffett unexpectedly announced he planned to step down as Berkshire chief executive at the end of the year.

He will be replaced by Vice Chairman Greg Abel, who presided over the reading of the shareholder proposals.

Buffett, who controls about 30% of Berkshire’s voting power, and the other Berkshire directors opposed all seven proposals, finding them unnecessary and in some instances inconsistent with the company’s decentralized culture.

The board also said Berkshire’s operating companies set their own policies concerning race and other employment factors, and that Berkshire’s overall approach was "simple - follow the law and do the right thing."

Businesses across corporate America have curbed public support or initiatives for diversity, equity and inclusion in the workplace, as conservatives including U.S. President Donald Trump push to curb DEI in the private sector and society, as well as in the federal government.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Berkshire has discussed generally in its annual reports the hiring practices of its operating businesses. In its latest report in February, it removed a reference to "diversity and inclusion in the workforce" as a hiring goal.

At Saturday’s meeting, Berkshire shareholders also reelected all directors who were eligible, including Buffett and Abel.

BRKb: A Bull or Bear Market Play?

Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks AI – 6 model portfolios fueled by AI stock picks with a stellar performance this year... In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if BRKb is on your watchlist, it could be very wise to know whether or not it made the ProPicks AI lists.

Unlock ProPicks AI now