Ajit Jain
About Ajit Jain
Ajit Jain, age 73, is Vice Chairman – Insurance Operations and a director of Berkshire Hathaway since 2018; he has worked in the Berkshire Hathaway Insurance Group since 1986 and has served as Executive Vice President of National Indemnity Company since 1996, overseeing the assessment and pricing of many of the largest and most complex risks and generating billions of dollars of capital for deployment by the Corporation . Company-level performance over the last five years shows total shareholder return of 100.5% (14.9% CAGR) and net operating earnings rising from $21.9B in 2020 to $47.4B in 2024 (+164%), though Berkshire does not use financial performance measures in setting NEO compensation and never uses Berkshire stock for employee compensation .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Berkshire Hathaway Insurance Group | Senior insurance executive | 1986–present | Led pricing/underwriting for very large, complex risks; generated billions of capital for Berkshire deployment |
| National Indemnity Company (Berkshire subsidiary) | Executive Vice President | 1996–present | Executive leadership of core reinsurance operations |
| Berkshire Hathaway Inc. | Vice Chairman – Insurance Operations | 2018–present | Oversees all insurance businesses across the group |
| Berkshire Hathaway Inc. | Director | 2018–present | Board oversight; insurance expertise on strategic decisions |
External Roles
No external public-company directorships or committee roles are disclosed for Ajit Jain in the 2025 proxy .
Fixed Compensation
| Metric (USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary | $16,000,000 | $20,000,000 | $21,000,000 |
| Bonus | $3,000,000 (discretionary) | — | — |
| All Other Compensation | $15,250 | $16,500 | $17,250 |
| Total Compensation | $19,015,250 | $20,016,500 | $21,017,250 |
Key policy drivers:
- Compensation for Mr. Jain is set by Warren Buffett, based on subjective assessments of performance and responsibilities; Berkshire does not consider Berkshire’s profitability or stock price and does not use Berkshire stock for employee compensation .
Performance Compensation
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| None used (no formulaic performance plan; no equity awards) | — | — | — | — | — |
Notes:
- Berkshire explicitly states it “does not use any financial performance measure” in setting PEO/NEO pay and “never intends to use Berkshire stock in compensating employees” .
- A one-time discretionary cash bonus was granted to Ajit Jain in 2022; none in 2023–2024 .
Equity Ownership & Alignment
| Holding Type | Amount | Percent of Class | Notes |
|---|---|---|---|
| Class A shares | 166 | <0.1% (“*”) | Includes holdings via trusts/foundation (see breakdown) |
| Class B shares | 124,784 | <0.1% (“*”) | Includes foundation shares with disclaimed beneficial interest |
Beneficial ownership breakdown:
| Component | Amount | Detail |
|---|---|---|
| Trusts for children/grandchildren (Class A) | 55 shares | Beneficial for family; part of Ajit Jain’s reported ownership |
| Private foundation (Class A) | 50 shares | Voting/investment power by Jain; disclaims beneficial interest |
| Private foundation (Class B) | 124,308 shares | Voting/investment power by Jain; disclaims beneficial interest |
Additional alignment disclosures:
- No equity awards, RSUs, PSUs, or options are used at Berkshire; therefore no vesting schedule or option overhang applies to Jain .
- The proxy reports beneficial ownership but does not indicate any pledging by Ajit Jain; Berkshire maintains an Insider Trading Policy for directors/officers/employees .
Employment Terms
| Item | Detail |
|---|---|
| Employment start at Berkshire insurance | 1986 |
| Current role tenure | Vice Chairman – Insurance Operations since 2018 |
| Board service | Director since 2018 |
| Employment contracts/Severance/Change-of-control | Not disclosed in the 2025 proxy |
Board Governance
- Board service history: Director since 2018; Ajit serves concurrently as management (Vice Chairman – Insurance Operations) and director .
- Committee roles: Ajit Jain is not listed as a member of the Audit Committee (Decker, Davis, Weitz, Witmer) or the Governance, Compensation and Nominating Committee (Burke, Chenault, Guyman, Murphy Jr.) for 2024 .
- Independence: Proxy explicitly identifies the independent directors; Ajit Jain is not included among them (he is an executive officer) .
- Attendance: “Each then current director attended all meetings of the Board and of the Committees of the Board on which he or she served” in 2024 .
- Executive sessions: Independent directors held three meetings in 2024 .
- Board leadership and dual-role context: Warren Buffett serves as CEO and Chairman; the Board supports the combined role given he is a controlling shareholder. Succession planning is discussed at each Board meeting; Susan L. Decker serves as Lead Independent Director and the Audit and Governance Committees provide oversight, including social and other risks .
Director compensation:
- Employees or spouses of employees do not receive director meeting fees; only non-management directors receive modest per-meeting fees and Audit Committee stipends. Ajit Jain does not receive director fees as a management director .
Compensation Structure Analysis
- Shift in cash pay: Base salary increased from $16.0M (2022) to $21.0M (2024); 2022 included a $3.0M discretionary bonus; no bonuses in 2023–2024 .
- No equity usage: Berkshire states it never uses Berkshire stock in compensating employees; there are no RSUs/PSUs/options for Jain, eliminating vesting-related selling pressure .
- Pay-for-performance: Berkshire does not use financial metrics or TSR in setting NEO pay; compensation is based on subjective assessment by Warren Buffett .
- Governance oversight: CD&A was reviewed by the Governance, Compensation and Nominating Committee; compensation for Jain is delegated to Buffett under policy .
Performance & Track Record
- Insurance execution: Jain brings 38 years managing Berkshire’s reinsurance operations, overseeing pricing of exceptionally large and complex risks and generating billions in capital for corporate deployment .
- Company performance context: Over 2019–2024, Berkshire TSR was 100.5% and net operating earnings grew to $47.4B (from $21.9B in 2020), though these measures are not used in executive pay decisions .
Say‑on‑Pay & Shareholder Feedback
- 2025 shareholder proposal to include highest NEO pay ratio in compensation program was recommended against by the Board; Berkshire already discloses CEO pay ratio per Item 402(u) .
Investment Implications
- Alignment: Absence of equity awards and options means no forced vesting-to-sale dynamics for Jain; alignment relies on personal share ownership and long-tenured stewardship of insurance underwriting, with beneficial holdings of 166 Class A and 124,784 Class B shares reported (some via trusts/foundation) .
- Retention risk: Cash-based package with rising base salary and no equity tether; tenure since 1986 and executive role since 2018 suggest continuity, but age 73 and Berkshire’s subjective pay setting are considerations for succession and bench strength .
- Trading signals: Lack of equity grants and options reduces typical insider-selling pressure; no pledging indicated in proxy, and an Insider Trading Policy is in place, limiting speculative signals from compensation mechanics .
- Governance context: CEO+Chair dual role persists, mitigated by a Lead Independent Director and active Audit/Governance Committees; Ajit is non‑independent management on the board with full attendance, offering deep insurance oversight but limited committee checks from him directly .