Warren Buffett on designing compensation plans in a cyclical industry

Warren Buffett and Charlie Munger respond to a 'terrific' question at the 2006 Berkshire Hathaway annual meeting.
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[@olivergilpin]

You want to compensate for what is under the managers’ control:
1) so don’t pay for performance that is successful but not because of their control
2) and don’t have them penalised for things outside of their control
As much as possible anyway. Super advice!

[@realbobbyaxel]

The last two minutes were mind blowing

[@olivergilpin]

7:45 envy drives many top executives more than greed

[@olivergilpin]

6:25 - compensation isn’t difficult, it gets made complicated by people who want to get paid more than they’re worth

[@davidkee9695]

Its made more complicated and confusing than it needs to be because the system serves the needs of someone who wants to get paid for more than they are worth.

[@aliqazilbash5231]

SMO; Behaviour in Organizations

[@iFreeThink]

Or only hire people who also work in education.

[@ronniedelahoussayechauvin6717]

Design by Microsoft, Lock you out your own computer & Devices.

[@SuperLari1234]

This is an amazing video,thank you Mr Buffet and Munger