Directors and Officers Liability Insurance (D&O)
(1) Almost all companies have a D&O (except Buffet's Berkshire). How do companies justify this? Do they have a tie-up with an insurance company for the severance package? Buffet says "Why do the company pay for the Executive's mistake"? He still runs a Fortune 100 company without it.
(2) Does D&O form a part of the Executives' compensation? Is it a separate employment agreement?