The Role of Options in Compensation

"There's a little more foolishness in my life than warrants," Berkshire Hathaway chairman says. "I think options ought to be granted basically at the fair value of the business" Buffett: If you're going to leave all your capital in every year, for me to get a fixed price option for 10 years would mean I was getting a royalty on the money that you left with me and I made the choice to have it with me."