Warren Buffett Takes Veiled Dig At Elon Musk While Criticizing CEO Pay Spiral: 'Envy And Greed Walk Hand In Hand'

Core Insights - Warren Buffett's final annual letter as CEO of Berkshire Hathaway highlights the concerning trend of escalating CEO compensation, particularly in light of Elon Musk's revised pay package [1][2] Group 1: CEO Compensation Trends - Buffett criticizes the growing trend of CEOs increasing their own pay, driven by envy and greed, leading to a cycle of pay hikes [2] - The practice of disclosing CEO pay, intended to create self-awareness, has backfired and turned into a competition for higher pay [3][4] - CEOs leverage their peers' compensation to justify their own pay raises, which also leads to increased remuneration for their directors [4] Group 2: Broader Implications and Reactions - The issue of CEO compensation has sparked intense debate, with industry leaders like Rivian's CEO receiving substantial pay packages, such as a potential $4.6 billion over the next decade [5] - Critics, including Senator Bernie Sanders, highlight the widening wealth gap, noting that the top 0.1% own nearly a quarter of U.S. stock market wealth while the bottom 50% hold just 1% [6] - Musk defends his compensation package, arguing that it is tied to Tesla's future valuation, despite criticisms regarding the company's valuation [7]