Berkshire Hathaway Inc: Disclosure of Key Diversity and Inclusion Metrics

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WHEREAS: Additional context and background for this request can be found at: https://whistlestop.capital/BRK.

Each year since 2021, over one-third of Berkshire’s independent shareholders supported a shareholder resolution asking that it release aggregated promotion, hiring, and retention rate data by gender, race, and ethnicity for its diverse employees. This data is needed to understand the effectiveness of the Berkshire companies’ efforts to ensure meritocratic workplaces. Berkshire has not made this information public, thus investors remain without assurance that diversity, equity, and inclusion (DEI) challenges are being well managed at Berkshire companies.

Studies have shown that employees often face discrimination in hiring and promotion as a result of their gender or race.[1] Warren Buffet spoke to this at Berkshire’s 2023 annual meeting, stating that “if [I] had been born Black, a woman, or in a different country [I] wouldn’t nearly [have] enjoyed the same type of life [I] have].”

Effective DEI programs are linked to significant benefits in financial performance, innovation, risk management, and reputation.

  • McKinsey studies have consistently found that companies with greater diversity in corporate leadership are more likely to outperform peers on profitability.

  • A review of over 1,600 companies found statistically significant positive correlations between increased manager diversity and key financial performance indicators, including: return on equity, return on invested capital, and revenue growth, particularly in the financial sector.[2]  

  • A 2024 meta-analysis found companies with diversity and inclusion initiatives experience a range of benefits that include increased innovation, enhanced employee engagement and satisfaction, and improved decision-making.[3]

  • American Banker, PwC, Bloomberg, and others have also emphasized the importance of diversity, equity, and inclusion to a company’s financial performance.[4]

The benefits of diverse and inclusive teams include access to top talent, widened understanding of consumer preferences, broadened leadership skills, and improved risk management.

Racial and gender discrimination are also prohibited under the Civil Rights Act of 1964. Poor human capital management can lead to costly discrimination lawsuits and brand damage. As examples, within Berkshire companies: HomeServices of America paid $24.4 million to resolve allegations of lending discrimination and Geico paid $6 million to settle a complaint it discriminated against women and others.[5]

Berkshire is a decentralized holding company. However, the Board remains responsible for ensuring the success of its companies and their ongoing contribution to shareholder value. Human capital oversight at the Board level will empower Berkshire’s companies to ensure meritocratic workplaces that allow each employee to excel on the basis of their own merits, regardless of their race, gender or other diversity characteristic.

RESOLVED: Shareholders request that Berkshire Hathaway designate a Board Committee to oversee the Company’s diversity and inclusion strategy across its holding companies.

Resolution Details

Company: Berkshire Hathaway Inc.

Lead Filers: James McRitchie, Represented by As You Sow

Year: 2025

Filing Date: 
November 2024

Initiative(s): Diversity and Gender Equality

Status: Filed

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Social JusticeAs You SowDEI, Diversity, Gender Equity, Equity, Berkshire Hathaway Inc, Berkshire, Berkshire Hathaway