David L. Sokol
David L. Sokol | |
|---|---|
| Born | Template:Birth year and age Omaha, Nebraska, U.S. |
| Occupation(s) | Corporate leader, Chairman of Teton Capital LLC |
| Years active | 1978–present |
| Known for | Chairman, president, and CEO of NetJets; chairman of MidAmerican Energy Holdings Company; former Berkshire Hathaway executive |
| Notable work | Pleased But Not Satisfied (2008) |
David L. Sokol (born September 1956) is an American corporate leader and currently serves as Chairman of Teton Capital LLC, located in Wilson, Wyoming. He formerly held the roles of chairman, president, and CEO at NetJets, as well as chairman of MidAmerican Energy Holdings Company, a company primarily owned by Berkshire Hathaway.
Early life
Sokol was born in 1956 in Omaha, Nebraska as the youngest among five siblings. His father operated a grocery store. Following his mother’s diagnosis with breast cancer, he took on multiple jobs such as delivering newspapers, caddying, janitorial work, and eventually managing a grocery store during night shifts to help support his family.
He earned a civil engineering degree from the University of Nebraska, Omaha in 1978. During his college years, he married and began raising a family. Upon completing his education, he started his professional journey as a structural engineer at HDR, Inc.
Education
He obtained a Bachelor of Science in Civil Engineering from the University of Nebraska, Omaha in 1978 and has been awarded an Honorary Doctorate by Bellevue University in Bellevue, Nebraska.
Professional career
From April 1993 until April 2008, Sokol served as CEO of MidAmerican Energy Holdings Company (formerly CalEnergy Company Inc.), a subsidiary under Berkshire Hathaway. He was also its President until January 1995. Prior to this, he was CEO of Kiewit Energy Company and Ogden Projects Inc.
Since March 1999, he has held the positions of CEO and Chairman at MidAmerican Funding LLC, which is affiliated with MidAmerican Energy Holdings. Additionally, he chairs Ce Casecnan Water & Energy Co., Inc., and has occupied leadership roles at organizations including Omaha Metropolitan Entertainment and Convention Authority, Omaha Airport Authority, HomeServices of America, Inc., Northern Electric PLC, among others. Between 2009 and 2011, he acted as a Non-executive Director for BYD Company Ltd.
Berkshire Hathaway
Prior to his unexpected departure in March 2011, Sokol was regarded as a prominent contender to follow Warren Buffett. Dubbed Buffett's "Mr. Fix-It," he successfully transformed struggling Berkshire units like Johns Manville and NetJets—turning NetJets’ $157 million loss in 2009 into a $207 million profit by 2010.
He was instrumental in Berkshire's strategic acquisitions, including pinpointing the Chinese automotive firm BYD in 2008. This led to Berkshire’s $230 million investment that appreciated to over $1.5 billion by 2010. Furthermore, he managed the $4.7 billion purchase of Constellation Energy, preventing its bankruptcy.
Lawsuits
In April 2010, a judge in Douglas County determined that David Sokol, then CEO of MidAmerican Energy Holdings Company, deliberately modified future profit projections to eliminate a stake related to a 1990s Philippines project with San Lorenzo Ruiz Builders & Developers Group. The court ruled that both Sokol and MidAmerican acted "willfully and intentionally," resulting in a $32 million judgment against MidAmerican with potential future profits valued at $140 million.
Additional rulings from courts in San Francisco and Omaha required MidAmerican to pay $52 million in back profits and reinstated ownership rights to La Prairie and San Lorenzo companies, potentially generating $280 million in future earnings.
A separate lawsuit demanding $150 million accuses Sokol of "secretly resuming negotiations" that lowered expected profits.
From January 5 to 7, 2011, Sokol acquired 96,060 shares of Lubrizol at a price of $104 each. Following a discussion with Lubrizol's CEO, he proposed the idea of Berkshire Hathaway purchasing Lubrizol to Warren Buffett in mid-January 2011. Subsequently, on March 13, 2011, Berkshire’s board sanctioned the acquisition at $135 per share.
Sokol stepped down from his role at Berkshire Hathaway on March 28, 2011. In a statement, Buffett acknowledged the share acquisitions but indicated there was no belief that any illegal conduct had taken place. Nevertheless, during the annual shareholder meeting, Buffett conceded he had not been fully informed initially and characterized Sokol’s behavior as "inexplicable" and "inexcusable."
Other
In 2008, Sokol independently published Pleased But Not Satisfied, which details his approach to business.
After leaving Berkshire, he oversees investments via Teton Capital, LLC, a family-owned holding company with a focus on energy and associated industries.
In 2010, Sokol introduced Supreme Court Justice Clarence Thomas at the Horatio Alger Association awards ceremony. He maintains a close personal friendship with Thomas and his wife, Ginni, including frequent shared vacations.
Family
Sokol and his wife, Peggy, are parents to a daughter named Kelly. Their son, David "DJ" Sokol, died of cancer at the age of 18.