Berkshire Hathaway 10-K reporting segments. See's revenues are highly seasonal with approximately 50% of total annual revenues being earned in the months of November and December. Berkshire made an after-tax loss of $444 million on the Tesco investment. [11] Instead of selling at the slightly lower price, Buffett decided to buy more of the stock to take control of the company and fire Stanton (which he did). [citation needed] On April 23, 2010, Mitek acquired the assets of Dur-O-Wal from Dayton Superior. [36], On January 10, 2018, Berkshire Hathaway appointed Ajit Jain and Greg Abel to vice-chairman roles. [22], Berkshire Hathaway has never split its Class A shares because of management's desire to attract long-term investors as opposed to short-term speculators. Pacificorp, Berkshire Hathaway Energys subsidiary which sells power in Utah, Oregon, Wyoming, Washington, Idaho, and California, generated 48% of its energy from coal in 2020. [52][53] There was speculation a bidding war could erupt for the company, with Barron's citing Markel, W.R. Berkley, Chubb, and Loews along with Pershing Square as potential suitors. The stores offer various dairy desserts, beverages, prepared foods, blended fruit drinks, popcorn, and other snack foods. Board of Directors Hamilton E. James Chairman of the Board Susan Decker Director Kenneth D. Denman Director Richard A. Galanti Executive Vice President, CFO and Director W. Craig Jelinek CEO and Director Sally Jewell Director Charles T. Munger Director Jeff Raikes Director John W. Stanton Director Ron Vachris President, COO and Director Politico reported that President Joe Biden is preparing to instruct federal agencies to take sweeping action to combat climate-related financial risks to government and the economy. Bloomberg News and E&E News also reported on the expected executive order. Berkshire Hathaway Energy lobbyists have also supported policy proposals in several states that would have discouraged the growth of distributed solar projects. For its 2021 fiscal year, BERKSHIRE HATHAWAY, listed the following CEO pay ratio data on its annual proxy statement to the SEC. [130], Berkshire previously held a considerable stake in Tesco Plc, the UK grocery retailer. However, Berkshire Hathaway 's (NYSE: BRK.A . To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. [55] This move was touted as an example of Warren Buffett's "disdain" for investment bankers. While Buffett has famously avoided tech stocks, he has said that Apple is a consumer products company and that he understands consumer products businesses. [6][7], Berkshire is the seventh largest component of the S&P 500 index and the top-ranked company in the Forbes Global 2000, which takes into account both market value and fundamental data. He is currently the chairman and CEO of Berkshire Hathaway. Updated February 27, 2023. It is the fifth-largest with ownership of 81 dealerships and revenues of $8 billion. The 2004 movie featured Arnold Schwarzenegger in the role of "The Warrenator" who travels through time to stop Buffett and Munger's attempt to save the world from a "mega" corporation formed by Microsoft-Starbucks-Wal-Mart. ", The salary for Buffett is $100,000 per year with no stock options, which is among the lowest salaries[23] for CEOs of large companies in the United States.[24]. [27] The 2006 movie depicted actresses Jamie Lee Curtis and Nicollette Sheridan lusting after Munger. [117], Berkshire owns 1.74 million shares of Gannett. (Note: The two shareholder proposals relating to (1) climate change, and (2) diversity, equity, and inclusion, were each voted against by a 75% to 25% margin as recommended by Berkshire's board of directors. Buffett has spoken very highly of both in public interviews and in the 2015 letter to shareholders he described hiring them both as "one of my best moves". Berkshire Hathaways board of directors is opposing a proposal from major shareholder groups that the company publish an annual report disclosing the climate risks it faces, even as the companys energy subsidiaries remain heavily invested in fossil fuels and have been impacted by extreme weather events. FILE - McDonald's CEO Steve Easterbrook is interviewed at the New York Stock Exchange, July 26, 2017. CTB, headquartered in Milford, Indiana, is a designer, manufacturer, and marketer of systems used in the grain industry and in the production of poultry, hogs, and eggs. These are the highlights of the 2021 Berkshire Hathaway annual meeting. The Board of Directors has fixed the close of business on March 2, 2022 as the record date for Buffett initially maintained Berkshire's core business of textiles, but by 1967, he was expanding into the insurance industry and other investments. This copy is for your personal, non-commercial use only. Pacificorp received an F grade in a report published by the Sierra Club and UC Santa Barbara Professor Leah Stokes, which found that the utilitys plans leave it with the most remaining coal without a 2030 retirement commitment of any U.S. electric utility. On June 8, 2017, it was announced that Berkshire Hathaway had settled with California's insurance regulator, allowing its Applied Underwriters unit to sell a revised version of its "controversial" compensation insurance policies for workers in the state. Last month, Securities and Exchange Commission (SEC) Acting Chair Allison Herren Lee highlighted the need for increased oversight of corporate climate risk disclosures, noting: Investors are demanding more and better information on climate and ESG, and that demand is not being met by the current voluntary framework. Berkshire first ventured into the insurance business with the purchase of National Indemnity Company. In a supporting statement for the proposal, the shareholder groups explain: Climate change and the energy transition to a low-carbon economy pose a systemic risk to the economy. Berkshire Hathaway BRK.A, -0.38%, BRK.B, -0.40%, Warren Buffett's distinctive company, has long been admired. Its non-insurance subsidiaries operate in diverse sectors such as confectionery, retail, railroads, home furnishings, machinery, jewelry, apparel, electrical power and natural gas distribution. [65] At year-end 2004, Clayton operated 32 manufacturing plants in 12 states. Not all companies do or will disclose without a mandatory framework, raising the cost, or resulting in the misallocation, of capital. In 2002, Berkshire acquired Albecca Inc. Albecca is headquartered in Norcross, Georgia, and primarily does business under the Larson-Juhl name. The Berkshire Hathaway Energy businesses include AltaLink, L.P., BHE Pipeline Group, BHE Renewables, BHE U.S. Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in various business activities, including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing and retailing. Despite its size, Berkshire had for many years not been included in broad stock market indices such as the S&P 500 due to the lack of liquidity in its shares; however, following a 50-to-1 split of Berkshire's Class B Shares in January 2010, and Berkshire's announcement that it would acquire the Burlington Northern Santa Fe Corporation, parent of BNSF Railway, Berkshire replaced BNSF in the S&P 500 on February 16, 2010. Berkshire also received warrants to purchase 43.5 million shares with a strike price of $115 per share, which were exercisable at any time for a five-year term. Over the last two years, most major investor-owned electric utilities in the U.S. have announced net zero goals. There are currently 12 people on the board of directors of Berkshire Hathaway. Read more: Bank of America says a new bubble may be forming in the stock market and shares a cheap strategy for protection that is 'significantly' more profitable than during the past 10 years, Notable past and present roles:Berkshire director (2003 - present); Microsoft general manager and other positions (1987 - 1999); CameoWorks strategic advisor (2017 - present); Brooks Running advisory board member (2012 - present), Notable past and present roles:Berkshire director (2004 - present); Capital Cities/ABC chairman and CEO (1996-1990), Notes:Buffett told Lawrence Cunningham, author of "Berkshire Beyond Buffett," that "most of what I learned about management, I learnt from Murph. In July, Berkshire acquired a 90% equity interest in MiTek Inc., which makes engineered connector products, engineering software and services, and manufacturing machinery for the truss fabrication segment of the building components industry and is headquartered in Chesterfield, Missouri. And BNSF is a major rail carrier of coal, and along with Union Pacific is the most exposed to weakening thermal coal demand, according to a Moodys report. At this time, Hathaway was run by Seabury Stanton, whose investment efforts were rewarded with renewed profitability after the Great Depression. The preferred stock yielded an annual interest rate of 10% earning Berkshire $500 million in interest income per year. [32] On September 12, 2011, Berkshire Hathaway announced that 50-year-old Ted Weschler, founder of Peninsula Capital Advisors, will join Berkshire in early 2012 as a second investment manager. This is obviously true for Berkshire Hathaway. By the end of 2013 Berkshire Hathaway entered the residential real estate brokerage sector under the name of HomeServices of America. Paul Morigi / Stringer / Getty Images Warren Buffett called out Theranos for appointing political and military leaders to its board. Policy Name: Corporate Governance Policies of the Board of Direc tors Policy Owner: NVIDIA Board of Directors Effective: March 2, 2021 Page 1 of 5 . 7. In addition, Mr. Katz is a managing member of K.F. [citation needed], In 1996, Berkshire acquired FlightSafety International Inc. (or FSI), founded in 1951 by Albert Lee Ueltschi. But the utilitys integrated resource plan leaves other coal plants running beyond 2030. David received a BSE degree in civil engineering from Duke University and an MBA degree from Stanford University. [116] The company became a majority owner of Heinz on June 18, 2015, after exercising a warrant to acquire 46.2 million shares of common stock for a total price of $462 million increasing its stake to 52.5%. MARK D. MILLARD, [35] At the end of 2017, the firm's cash and cash equivalent holdings rose to $116 billion. He has been in this role since January 2018, and has been a member of the Berkshire Hathaway board of directors since. Berkshire Hathaways insurance subsidiary is among the insurance companies that continue to underwrite coal, oil and gas without any restrictions, according to a report from Insure Our Future. Headquartered in Fort Worth, Texas, TTI is the largest distributor specialist of passive, interconnect, and electromechanical components. 1. Products are researched, designed, and tested by The Pampered Chef, and manufactured by third-party suppliers. However, seven of those locations were closed by the end of the decade, accompanied by large layoffs. (Reuters) - Warren Buffett makes mistakes too. NLPC seeks to kick Tim Cook, Al Gore from Apple board of directors | AppleInsider . [97], As of February 2023, roughly 75% of Berkshire's equity securities were concentrated in five companies: American Express Company ($26.29 billion), Apple Inc. ($135.47 billion), The Coca-Cola Company ($23.91 billion), Chevron Corporation ($27.17 billion), and Bank of America Corporation ($35.36 billion)[98]. Companies, Charlie Munger's Letters to Wesco Shareholders, Celebrating 50 Years of a Profitable Partnership, Information Regarding Warren E. Buffett's Annual Contributions to Five Foundations, Facts Regarding Berkshire's 2021 Investments in Activision Common Stock. [28] The meeting, scheduled to last 68 hours, is an opportunity for investors to ask Buffett and Munger questions. We've detected you are on Internet Explorer. Berkshire Hathaway released 2021 financial results today along with Warren Buffett's annual letter to shareholders. MidAmerican Energy, Berkshire Hathaway Energys subsidiary in Iowa, highlights its significant investments in wind energy but it has not yet established closure dates for its coal plants. Yet unlike most other large investor-owned U.S. electric utilities, Berkshire Hathaway Energy has not announced a net zero goal. In addition to Berkshire Hathaway Energys exposure to climate transition risks from its fossil fuel investments, the company is also exposed to physical climate risks, such as fires, drought, and stronger storms. Berkshire Hathaway Inc said Tom Murphy, the former head of Capital Cities/ABC Inc and longtime friend of Warren Buffett, has resigned from its board of directors after a bout with COVID-19. Nati Harnik/Associated Press By Michael J. de la Merced April 30, 2021 Nevertheless, while this is no high-growth enterprise, Berkshire has a lot to offer investors of all kinds over the long term. Warren Buffett, the chairman and chief executive of Berkshire Hathaway for more than 50 years. Hathaway had been successful in its first decades, but it suffered during a general decline in the textile industry after World War I. Most recently, Berkshire Hathaway Energys subsidiary in Wyoming, Rocky Mountain Power, supported a bill in that state that would have ended net metering, and could have killed the states solar industry, according to the Wyoming Outdoor Council. Oliver Chace Founder Ajit Jain Board Member Gregory Edward Abel Board Member Charles Thomas Munger Vice Chairman [16], In 2008, Berkshire invested in preferred stock of Goldman Sachs as part of a recapitalization of the investment bank. According to its website, the company has 1,800 instructors and offers more than 4,000 individual courses for 135 aircraft types, using more than 320 flight simulators to serve customers from 167 countries.[67]. CORT Business Services Corporation was acquired in 2000 by an 80.1% owned subsidiary of Berkshire and is the leading national provider of rental furniture, accessories and related services in the "rent-to-rent" segment of the furniture rental industry. At the time of purchase, Berkshire's voting interest was limited to 10% of the company's shares, but this restriction ended when the Public Utility Holding Company Act of 1935 was repealed in 2005. Joe Smyth is a Research and Communications Manager for the Energy and Policy Institute. Copyright 2023 Surperformance. Pacificorp also owns stakes in coal mines, which supplied 16% of the utilitys total coal consumption in 2020. However, Berkshire Hathaway created a Class B stock, with a per-share value originally kept (by specific management rules) close to 130 of that of the original shares (now Class A) and 1200 of the per-share voting rights, and after the January 2010 split, at 11,500 the price and 110,000 the voting rights of the Class-A shares. Berkshire Hathaway Home Services . Headquartered in Fort Worth, Texas, Acme manufactures and distributes clay bricks (Acme Brick), concrete block (Featherlite), and cut limestone (Texas Quarries). Barron's said Berkshire was the most respected company in the world in 2007, based on a survey of American money managers. 2021 Berkshire Hathaway Annual Meeting. 2014 Annual Meeting Highlight Reel. In 2002, Berkshire acquired The Pampered Chef, Ltd., the largest direct seller of kitchen tools in the United States. This statement is furnished in connection with the solicitation by the Board of Directors ("Board") of Berkshire Hathaway Inc. Berkshire then restarted buying Apple stock again between September to December. TTI's extensive product line includes; resistors, capacitors, connectors, potentiometers, trimmers, magnetic and circuit protection components, wire and cable, identification products, application tools, and electromechanical devices. [82], Berkshire Hathaway Energy's HomeServices of America (see complete list of companies) is a residential real estate brokerage firm based in Minneapolis, Minnesota, and founded in 1998. Fechheimer Brothers is made up of two brands, Flying Cross and Vertx. Meanwhile, the Biden administration is expected to announce an executive order directing several federal agencies to respond to climate risks. Served on the Board of Directors for local non-profit organization with a focus on labor-saving innovations for . [] identify any material gaps or misstatements in issuers disclosure of climate risks, reports the Energy & Policy [], [] supporting the resolution, including California Public Employees Retirement System, explicitly noted: We consider the Companys current level of disclosure to be insufficient for investors to []. Letters from Annual Reports (1977 through 2001), quarterly reports, press releases and other information about Berkshire may be obtained on the Internet at berkshirehathaway.com. . ", Notable past and present roles: Berkshire director (1997 - present); Munger, Tolles & Olson cofounder and partner (1962 - present); The Washington Post Company director (2003 - 2017), Source: Berkshire Hathaway; Graham Holdings, Read more: GOLDMAN SACHS: Buy these 25 stocks that are wildly popular with hedge funds and have crushed the market this year, Notable past and present roles: Berkshire director (1988 - present); Peter Kiewit Sons CEO (1979 - 1998). Berkshire's other investments tied to real estate include Clayton Homes, which makes manufactured housing. Mr. Katz served as an observer to our Board from September 2013 to February 2019. View detailed BRK.A description & address. [14][15], Buffett's letters to shareholders are published annually. [13], Berkshire's class A shares sold for $465,725 as of January 5, 2022, making them the highest-priced shares on the New York Stock Exchange, in part because they have never had a stock split and have only paid a dividend once since Warren Buffett took over, retaining corporate earnings on its balance sheet in a manner that is impermissible for mutual funds. The new appointments are part of Tesla's $20 million settlement with US regulators in . Beyond its energy subsidiaries, other Berkshire Hathaway subsidiaries also remain invested in fossil fuels. HomeServices has operations in 28 states and over 22,000 sales associates. Until a name change on April 30, 2014, Berkshire Hathaway Energy was known as MidAmerican Energy Holdings Co. On June 21, 2005, Berkshire Hathaway agreed to purchase Forest River Inc., the world's largest seller of recreational vehicles, from Pete Liegl. After widespread public opposition in legislative hearings, the bill failed last month. ISS disclosed its recommendations to investors on Friday, saying they should withhold votes from Susan Decker, David Gottesman, Walter Scott Jr and Meryl Witmer, who make up the compensation. In 1962, Warren Buffett began buying stock in Berkshire Hathaway after noticing a pattern in the price direction of its stock whenever the company closed a mill. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. VIDEO 00:00. Its segments include Insurance, such as GEICO, Berkshire Hathaway Primary Group and Berkshire Hathaway Reinsurance Group; Burlington Northern Santa Fe, LLC, which is engaged in the operation of the railroad system; Berkshire Hathaway Energy, which includes regulated electric and gas utility; Manufacturing, which includes manufacturers of various products, including industrial, consumer and building products; McLane Company, which is engaged in the wholesale distribution of groceries and non-food items; Service and retailing, which includes providers of various services, including shared aircraft ownership programs, aviation pilot training, electronic components distribution and various retailing businesses, including automobile dealerships and furniture leasing. They would be sold by brokers working for big commissions, would impose other burdensome costs on their shareholders, and would be marketed en masse to unsophisticated buyers, apt to be seduced by our past record and beguiled by the publicity Berkshire and I have received in recent years. Products are produced in the United States and Europe and are sold primarily through a global network of independent dealers and distributors, with peak sales occurring in the second and third quarters. In the 2017 annual report, Berkshire Hathaway disclosed its total position by December 31, 2017, to be 166 million shares (3.3% of Apple). Heinz Co. for $72.50 per share or $28 billion including debt. Berkshire Hathaway Energy is the fifth largest carbon polluting power company in the U.S., according to MJ Bradleys latest annual Benchmarking Air Emissions annual report, and the eighth largest in terms of power generated. Copyright 1978-2023 Berkshire Hathaway Inc. News Releases from Berkshire Hathaway and from Warren Buffett, Berkshire Hathaway Energy Investor Presentations, Special Letters from Warren & Charlie RE:Past, Present and Future, Warren Buffett's Letters to Berkshire BERKSHIRE HATHAWAY INC. : Shareholders Board Members Managers and Company Profile | US0846701086 | MarketScreener Homepage Equities United States Nyse Berkshire Hathaway Inc. Company BRK.A US0846701086 BERKSHIRE HATHAWAY INC. (BRK.A) Add to my list Report Summary Quotes Charts News Ratings Calendar Company Financials Consensus Revisions Funds https://www.barrons.com/articles/berkshire-hathaway-names-warren-buffetts-daughter-and-money-manager-chris-davis-to-its-board-51634767965. Sign In. American Airline's CEO Doug Parker is said to have won over Ted Weschler in arguing that the airline industry had consolidated sufficiently and rationalized supply such that longer-term profitability could be achieved in an industry that has historically been loss-making in aggregate. [124] In May 2022, Berkshire Hathaway acquired a $2.6 billion stake in Paramount Global. [72][73], On October 3, 2017, it was announced that Berkshire Hathaway will acquire 38.6% of truck stop chain Pilot Flying J, with plans to increase its stake to 80% in 2023. As of December31, 2022,[update] Berkshire owns 5.8% of Apple with 915.6million shares, according to the company's February 14, 2023, 13G filing. John. Jul 2021 - Jul 2022 1 year 1 month. Annual & Interim Reports. Notes: One of Buffett's childhood friends, Scott partnered with him to buy MidAmerican Energy in 2000, which became Berkshire Hathaway Energy in 2014. Notable past and present roles: Berkshire director (2013 - present); Eagle Capital Partners general partner (2001 - present); Emerald Partners cofounder and manager (1989 - 2000), Notes: Witmer recently bought more than $2.2 million worth of Berkshire stock, Visit Business Insider's homepage for more stories, Famed economist David Rosenberg says investors are falling into a classic market trap that's historically preceded a further meltdown and warns 'there's not going to be much of a recovery', MORGAN STANLEY: Buy these 23 high-growth stocks that look poised to deliver market-beating returns over the long term, An elite 'ultragrowth' investor explains how he's beating the market in 2020 and analyzes 4 stocks he thinks will help him stay on top for the next 5 years. Companies - Justin Brands", "Berkshire Hathaway Inc. Acquires MiTek Inc", "Berkshire Hathaway to Acquire Shaw Industries", "Berkshire Hathaway Inc, Form 10-Q, Quarterly Report, Filing Date Aug 11, 2003", "Albert Lee Ueltschi, the Father of Modern Aviation Training, Dies at 95", "Welcome - FlightSafety International Inc", "Berkshire Hathaway Inc. to Acquire Executive Jet, Inc", "Berkshire to Buy Oriental Trading Company", "Berkshire Hathaway to Acquire Oriental Trading Company", "Warren Buffett, Berkshire Hathaway buying Pilot Flying J truck stops", "Berkshire Hathaway to Buy Omaha World-Herald Newspaper", "Media General Shares Soar After Warren Buffett Agrees To Buy Its Newspaper", "Berkshire Adds Waco Newspaper, Expanding Media Wager", "Buffett: Local papers have healthy future", "Warren Buffett Buys Post-Newsweek's WPLG", "Warren Buffett Will Sell His Newspaper Empire", "Warren Buffett Can't Buy Real Estate Agencies Fast Enough", "Berkshire Hathaway Inc, Form 6-K, Filing Date Oct 30, 2012", "Canadian real estate industry welcomes Buffett to the neighbourhood", "Metro Phoenix Real-Estate Attracts Warren Buffett", "Why Is Buffett Not Interested in Buying Real Estate? president (2007 -2009), Notable past and present roles:Berkshire director (2004 - present); First Manhattan CEO (2006 - 2019). Mr. Davis is Chairman of Davis Select Advisors. The companys resistance to disclosing climate risks to investors comes as financial regulators move to strengthen corporate climate risk disclosure rules, and the Biden administration is expected to announce an executive order on climate related financial risk. Company profile for Berkshire Hathaway Inc. Cl A including key executives, insider trading, ownership, revenue and average growth rates. [57] Buffett frequently referred to Phillips 66 as one of the best businesses Berkshire invested in because of its consistent dividends and share buyback programs. This copy is for your personal, non-commercial use only. the limited number of personnel in our corporate office, we are unable to Warren Buffett's Berkshire Hathaway paid $8.2 billion to acquire Pilot Travel Centers in January. After the merger, Berkshire Hathaway had 15 plants employing over 12,000 workers with over $120million in revenue, and was headquartered in New Bedford. "[128], In May 2016, it was revealed in a regulatory filing that Berkshire had acquired a stake in Apple Inc. A major subsidiary of Berkshire Hathaway Energy is Northern Powergrid, which operates in the UK.[60]. By December 31, 2016, Berkshire had built up a stake of 57.4 million shares (1.1% of Apple) with an estimated average acquisition price of $110 per share (before the 2020 4:1 split). 3. He was formerly the Chief Equality and Recruiting Officer at Salesforce, which he joined in September 2016 until July 2021. INTRODUCTION AND RESPONSIBILITIES. [111], On March 14, 2011, Berkshire Hathaway announced that it would acquire the Lubrizol Corporation for $9billion in cash, a deal that was described as one of the largest deals ever for Berkshire Hathaway. [citation needed], In June 2014, the firm's cash and cash equivalents rose past $50 billion, the first time it finished a quarter above that level since Buffett became chairman and chief executive officer. In 2008, Berkshire purchased preferred stock in Wrigley, Goldman Sachs, and GE totaling $14.5billion. In 2001, Berkshire acquired three additional building products companies. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. In 1986, NetJets created the fractional ownership of aircraft concept and introduced its NetJets program in the United States with one aircraft type. [9], Berkshire Hathaway traces its roots to a textile manufacturing company established by Oliver Chace in 1839 as the Valley Falls Company in Valley Falls, Rhode Island. Read more: David Herro was the world's best international stock picker for a decade straight. Berkshire Hathaway's annual letter to shareholders and latest earnings is expected this weekend. From April to September 2022, he assumed the roles of Interim Chief Executive Officer . Notes: Bill Gates' replacement on Berkshire's board. The current members of the board of directors of Berkshire Hathaway are Warren Buffett (Chairman), Charlie Munger (Vice Chairman), Greg Abel (Vice Chairman), Ajit Jain (Vice Chairman), Chris Davis, Susan Alice Buffett (Warren's daughter), Howard Graham Buffett (Warren's son), Ronald Olson, Kenneth Chenault, Steve Burke, Susan Decker, Meryl Witmer, Charlotte Guyman. Many risks are already taking effect, impacting the value of companies across multiple sectors. [83] In addition to brokerage services, these real estate companies provide mortgage loan originations, title and closing services, home warranties, property and casualty insurance and other related services. While the intent of this message was to bolster confidence in the leadership of a "Buffett-less Berkshire", critics have noted that this strategy of choosing a successor without a concrete exit strategy for the sitting CEO often leaves an organization with fewer long term options, while doing little to calm shareholder fear.