Berkshire Hathaway
Berkshire Hathaway, the holding company managed by Warren Buffett, does not purchase D&O insurance for its directors, unlike most similar companies. Warren Buffett believes that the directors should face consequences of their mistakes the way that other shareholders do. - notably, however, this self-serving statement overlooks the holding-company structure of Berkshire Hathaway, auxiliary indemnification agreements with Buffett, and the fact that the individual operating companies may still purchase such insurance. Ultimately, as to individuals, it is a cost/benefit analysis...if a director/officer is paid enough, they may risk the prospect of personal liability. This is particularly the case when the executive is an extremely wealthy individual with substantial means.
Read more about this topic: Directors And Officers Liability Insurance