I am Jaylen Spann. I am speaking on behalf of the non-profit advocacy organization, As You Sow and am a researcher for the consultancy Whistle Stop Capital. I formally move proposal number 5 asking for Berkshire Hathaway to report on the outcomes of their diversity, equity, and inclusion efforts by publishing quantitative data on workforce composition, and recruitment, retention, and promotion rates of employees by gender, race, and ethnicity.

Warren Buffet once mentioned that he had grown up with two sisters who, to quote Mr. Buffet “are absolutely smart as I am and better personalities.” He also bravely admitted that he only placed women on his Board after his wife suggested it – in 2003, 40 years after he started his company. It is one thing to know that people of all genders, races and ethnicities can contribute to Berkshire Hathaway. It is another thing entirely to intentionally and proactively create the space, opportunity, and training needed within a company for those people to be able to contribute without facing harassment or discrimination.

In the absence of data, we must instead assume that Berkshire Hathaway companies are no better, nor any worse, than any company in America. The statistics for American companies are unacceptable, particularly when we consider the strong link – found by The Wall Street Journal, McKinsey, Credit Suisse and others, between diversity, equity and inclusion programs and corporate outperformance. 42% of Americans have witnessed or experienced racism at work.[1] 64% of Black employees say that discrimination is an issue in their own workplace.[2]  Many people of color are barred from entering the workplace at all, a meta-study reviewing data from 1989 – 2017 found that, on average, Whites receive 24% more callbacks than Whites and 36% more callbacks than Blacks.[3]

If we take a look at Berkshire’s executive team, we can see that headquarters should be proud of the gender and racial diversity present in its leadership team. The culture that exists at Berkshire Hathaway headquarters, appears to be one that recruits, hires, promotes and retains diverse employees. Mr. Buffet stresses the importance of culture and the value that it has on the long-term success of a company. He’s said that “culture, more than rule books, determines how an organization behaves.”  Investors are looking for assurances that this culture is successfully being managed, with oversight and intention, within the Berkshire Hathaway companies as well.

In order to allow their investors to understand their workplace diversity, 87 of the S&P 100 companies have released or have committed to releasing their EEO-1 form, a standardized, government mandated accounting of diversity of gender race and ethnicity by employment levels. By contrast, of the more than 60 companies Berkshire owns, only one has publicly released this form. Only one Berkshire Hathaway company has released this data. One company. This is not leadership.

The Company’s inclusion data – the hiring, retention and promotion rates of diverse employees – must also be shared for investors to have a full understanding of the actual experience of not only Berkshire’s employees but of its portfolio companies’ employees as well.

The Board has released insufficient information to assure investors that it is attentive to diversity, equity, and inclusion at Berkshire Hathaway companies. We encourage transparency, even in the face of imperfection, in order to show that the company’s leaders are truly committed to change and to attracting, retaining and promoting the best possible employees.

Endnotes:

[1] https://www.businessinsider.com/glassdoor-42-of-us-employees-have-witnessed-or-experienced-racism-2019-10?r=US&IR=T

[2] https://www.blackenterprise.com/64-of-blacks-say-racism-and-discrimination-are-issues-at-their-workplace/

[3] https://www.forbes.com/sites/eriksherman/2017/09/16/job-discrimination-against-blacks-and-latinos-has-changed-little-or-none-in-25-years/