He was stingy about paying Chace, who made less than competitors at other textile mills.40 In 1970, after Chace had been at the helm for five years, his salary was $42,000 a year. Also, Buffett tightened up considerably—as did other textile companies—on the pension plan. “Warren had a strong negative feeling about management benefiting at the expense of shareholders,” Chace noted. Yet Chace deeply appreciated his autonomy under Buffett and was extremely devoted to him. This says a lot about Buffett’s effect on people. Though he wouldn’t loosen his wallet, he was uncanny as a motivator.
