Changes in Leadership and CEO Succession Essay Example | Topics and Well Written Essays - 1000 words

Changes in pick out and CEO Succession - Essay ExampleFounded in 1839 by Oliver Chace, the Valley Falls Company narrow in textile manufacturing. Its 1889 merger with Berkshire Cotton Manufacturing saw the gilds bring in change to Berkshire finely Spinning Associates. The companys final merger then followed this in 1955 with Hathaway Manufacturing Company, which resulted in its new name Berkshire Hathaway. Initially, the company had been successful expanding its operations across the US. However, after the World War I, a decline in the textile industry led the company shutting down several of its mills. This was when (1962) Warren lash began buying stock in the company. By 1964, Buffet had acknowledged that the waning textile industry would not lead to an improvement in the companys finances therefore, he agreed to sell his shares when he accepted an oral tender offer from Seabury Stanton (the companys owner). Stantons failure to uphold his end of the slew rendered the deal v oid, which motivated an aggrieved Buffet to purchase more shares from the company to become majority shareholder. In 1967, Buffet set his sights on insurance, and decided to purchase the National Indemnity Company. Since then, he shut down the be textile mills and continued to acquire subsidiary companies while investing in the stock market. Currently, Forbes mag ranks Berkshire Hathaway as the fifth biggest public company in the world.Presently, Buffet serves in the capacity of CEO, Chairman, Chief investment Officer (CIO) and majority shareholder. As such, the company must find an individual or group of individuals with the expertise required to perform the diverse functions. The proposed succession plan is split into five separate whereby three parts focus on personnel, one on corporate culture and the last on institutional ownership. The companys Board of Directors proposes that