Berkshire Hathaway Changes Top Management at Pilot Company
I am quoted in this article:
“He will leave the business alone,” said David Kass, clinical professor of finance at the Robert H. Smith School of Business at University of Maryland, who studies Berkshire.
Kass said it’s rare for Berkshire to bring in new management. But, when it bought a minority stake of Pilot back in 2017 with plans to own a majority in 2023, the deal hinted at a CEO shift.
Kass, the professor who studies Berkshire, said it’s likely the holding company’s preference “to own 100% rather than share ownership. (But) they will leave it to the discretion of the family.”
Berkshire outright bought Maryville-based Clayton Homes for $1.7 billion in 2003, and the company maintains its corporate headquarters there.
As for change within the company, Kass called Buffett “the preferred owner” for anyone looking to sell their business but maintain culture, stabilize employment and keep the company intact.
“I would expect there to be minimal change in the culture and the atmosphere, the working conditions, compensation,” Kass said. “Whatever attributes are important to the business and the employees, I would expect to pretty much stay the same.”
As for Berkshire’s future, Kass said Abel, the heir apparent to Buffett, 92, would maintain the legendary investor’s methods.
