How can a board of directors justify this expense?

Because they are also getting lavishly paid.

I have been on 20 public company corporate boards, not counting any Berkshire subsidiaries. So, I’ve seen a lot of corporate boards operate. And the independent directors, in many cases, are the least independent

I mean, if the income you receive as a corporate director — which typically may be around $250,000 a year ”now, if that’s an important part of your income, and you hope that some other corporation calls the CEO and says, “How’s so-and-so as a director?” and the current CEO — your CEO ” says, “Oh, he’s fine and never raises any problems,” and then you get on another board at 250,000 and that’s an important part, how in the world is that independent? I mean, I really, just an observation

They’re just not going to upset the apple cart, because what they’re — and I’d probably behave the same way in the same position. I mean, if $250,000 a year is important to you, why in the hell would you behave in a way that’s going to cause your CEO to say to the next CEO, “This guy acts up a little bit too much. You really better get somebody else.” It’s the way it works

- Warren Buffet

(As of 2026, Buffet’s estimated net worth stood at $145.9 billion)