Warren Buffet’s Berkshire Hathaway has named David Sokol, 52, to run its money-losing NetJets airplane-sharing unit. The Bloomberg report said the move added to speculation he may one day lead the investment and holding company built by billionaire Buffett. Sokol was tapped by Buffett to replace Richard Santulli on an interim basis as chief executive officer of the New Jersey-based airplane-rental unit. Sokol is chairman of Berkshire’s energy business. Buffett, Berkshire’s leader since the 1960s, is monitoring candidates to succeed him in overseeing a cadre of businesses ranging from candy and furniture to energy and insurance. The potential successors all work for Berkshire, and picking one is the board’s most important job, Buffett, 78, has said. NetJets has suffered as the U.S. recession deepened in the last year. The company posted a $96 million pretax loss in the first quarter, compared with profit of $45 million a year earlier, on write-downs.
Buffett Selects Sokol to Run NetJets, Prompting Succession Rumors
The assignment is considered a possible test to see if Sokol, who was chairman of Berkshire’s energy business, has what it takes to run Buffett’s vast empire.
August 5, 2009