Sokol quitting as Berkshire utility CEO, will remain chairman
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By staff and wire reports
OMAHA — Berkshire Hathaway Inc.’s utility division said Chief Executive David Sokol will step down next month but will remain chairman of MidAmerican Energy Holdings Co., which also owns the dominant real estate companies in Lincoln.
Warren Buffett’s Omaha-based holding company owns about 87 percent of MidAmerican, which is based in Des Moines, Iowa.
Sokol is one of four Berkshire managers who have been mentioned as candidates to succeed Buffett as Berkshire’s CEO.
To replace the 77-year-old Buffett, Berkshire plans to split his job into three parts — chairman, chief investment officer and chief executive officer.
The only part that has been clearly spelled out before is the job of chairman. Buffett has said that when he dies, his son will take over the job to ensure Berkshire’s culture is preserved. Howard Buffett already serves on the board.
Besides Sokol, the other Berkshire managers who have been mentioned as possible chief executives are: Ajit Jain, who runs Berkshire’s reinsurance division; Tony Nicely, chief executive of Berkshire subsidiary Geico; and Richard T. Santulli of NetJets.
Buffett said last month that he has also identified four investment managers outside Berkshire who could take over the company’s $75 billion stock portfolio and invest its $44.3 billion in cash. And all four want to work at Berkshire for reasons besides compensation.
Sokol, 51, has led MidAmerican since February 1991. He is also chairman of the Omaha Metropolitan Entertainment and Convention Authority, a nonprofit that runs the Qwest Center in Omaha.
MidAmerican did not say in its news release why Sokol chose to relinquish CEO duties now, and Sokol could not be reached for comment.
MidAmerican President Greg Abel will become CEO at the company’s April 16 board meeting.
MidAmerican has about 17,000 employees and annual revenues of about $12.6 billion.
MidAmerican generated $1.1 billion net income for Berkshire in 2007, up from $885 million in 2006.
MidAmerican owns several major utility businesses and the second-largest U.S. real estate brokerage firm, HomeServices of America.
HomeServices of America owns HomeServices of Nebraska and Woods Bros. Realty, the dominant real estate firms in Lincoln.
Just last week, Robert Moline, chief executive of HomeServices of Nebraska, was appointed president and chief operating officer of HomeServices of America, effective March Monday. He will report to Ron Peltier, chairman and CEO of HomeServices of America.
Moline will be replaced as chief executive at HomeServices of Nebraska by H. Gene Brake.
Among MidAmerican’s utility businesses:
MidAmerican Energy servies more than 700,000 retail electric customers in Illinois, Iowa and South Dakota, and more than 700,000 natural gas customers in those states and Nebraska.
Yorkshire Electricity and Northern Electric deliver power to about 3.8 million customers in the United Kingdom.
Pacific Power and Rocky Mountain Power serves 1.7 million customers in six western states, and MidAmerican Energy serves 720,000 customers in Iowa.
And MidAmerican owns two natural gas pipeline companies, Kern River and Northern Natural, that carry about 8 percent of the natural gas consumed in the United States.
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On the Net:
Berkshire Hathaway Inc.: www.berkshirehathaway.com
MidAmerican Energy Holdings Co.: www.midamerican.com
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