Executive Compensation With many executives making tens of millions in compensation in 1991, this has been a hot topic in the press. Buffett’s response: There should be no cap (you simply cannot overpay for truly great performance). Longevity is irrelevant. Relate compensation directly to the performance of the business. (Yardsticks will vary depending on the business and the amount of capital employed). What he finds objectionable is the large sums being paid for mediocre performance.
