The Berkshire Hathaway annual meeting took an unexpected turn this year as shareholder proposals sparked controversy and a federal lawsuit. Peter Flaherty, a presenter with the National Legal and Policy Center, filed a lawsuit against Warren Buffett and the company after being cut off during his presentation last year and subsequently arrested for trespassing. Flaherty returned this year with a new proposal, questioning the character of Bill Gates, a close friend of Buffett, and suggesting that someone else should take over as chairman of Berkshire.
Despite the lawsuit and the contentious proposals, Buffett remained silent during the meeting, letting Vice Chairman Greg Abel lead the discussions. All six proposals, including Flaherty’s, were rejected by the board, with Buffett’s significant voting power ensuring their failure. Other rejected proposals included calls for reports on climate change risks, diversity and inclusion efforts, and railroad safety.
Jared Cassity, safety chief for the SMART-TD rail union, argued for a board committee focused on railroad safety, citing the need for effective oversight to prevent disasters like the one Norfolk Southern experienced last year. However, Berkshire defended its safety practices at BNSF and dismissed the need for additional oversight.
While the meeting ended with all proposals rejected, the controversy and debate surrounding the issues raised by shareholders added an unexpected twist to the typically uneventful annual gathering of Berkshire shareholders.