Berkshire Hathaway executive resigns in wake of Lubrizol acquisition

David Sokol, one of Warren Buffet’s top managers at Berkshire Hathaway, resigned after it appeared in the press that he had bought close to US$10 million in shares of major petroleum additive-maker Lubrizol Corp., prior to its acquisition by Berkshire Hathaway on March 14. Sokol has denied any wrongdoing. One of four executives being groomed to succeed CEO Buffet, Sokol said his resignation had nothing to do with his purchase of Lubrizol shares. Berkshire Hathaway’s acquisition is a windfall for Lubrizol shareholders and reportedly also for the company’s executives. According to a company proxy filing, senior executives at Lubrizol could receive a total of US$148.5 million from cashing out their company stock options, rising to US$249 million if they leave the company under some conditions after the sale. (April 1,2011)