Sokol Resigns as NetJets Leader

David Sokol resigned March 28 from his positions at several Berkshire Hathaway-owned companies, including fractional-share provider NetJets, where he was chairman and CEO. Sokol had indicated interest in resigning from the company on two previous occasions, "most recently two or so years ago," according to a statement by Berkshire Hathaway chairman and CEO Warren Buffett.

 Earlier this year, Berkshire Hathaway reported pretax profits at its "other services" segment, which includes NetJets and FlightSafety International, of $984 million during 2010 versus a $91 million loss in 2009. On March 1, NetJets announced a purchase agreement for up to 120 Bombardier Global jets worth as much as $6.7 billion. Last October, Sokol surprised National Business Aviation Association show-goers with an order for 125 Embraer Phenom 300s, reversing an era of cancelled orders and downsizing of the fleet and personnel ranks.

 Sokol took over at NetJets in August 2009, after founder Richard Santulli was forced out of the company following its losses of millions of dollars per year. Sokol was also chairman of MidAmerican Energy Holdings and Johns Manville. NetJets president Jordan Hansell will become chairman and CEO, according to Buffett.

 "Dave's contributions have been extraordinary," Buffett wrote in his statement. "At NetJets, Dave resurrected an operation that was destined for bankruptcy, absent Berkshire's deep pockets." Buffett's statement also concerned Sokol's involvement in Berkshire Hathaway's March 14 offer to purchase Lubrizol, a specialty chemicals company. (That deal is now awaiting approval by Lubrizol's shareholders.)

 According to Buffett, "Dave's letter was a total surprise to me, despite the two earlier resignation talks...This time, however, I did not attempt to talk him out of his decision and accepted his resignation."