The Warren Buffett school: they have free rein, ready capital and the best boss a CEO could want. They run Berkshire Hathaway companies, and you've only begun to envy them - Careers - chief executive officer

Chief Executive, The, Dec, 2002 by Russ Banham

"Alan and I became friends and kept in touch after graduation," she says. "In August 1982, I was working at a grading laboratory for gemstones when Alan called and said there was a retail position opening up at Borsheim's. I packed up the car and drove cross-country.

She started as a sales associate and appraiser making $4 an hour. Ike Friedman, the family patriarch and CEO, was impressed by her character and integrity, the same traits that would later appeal to Warren Buffett. "There's an old saying, 'If you don't know jewelry, know your jeweler,'" says Robert Miles, author of The Warren Buffett CEO. "Susan is the kind of jeweler people can trust with what are arguably among the most difficult buying challenges in their lives."

Jacques was named merchandise manager at Borsheim's in 1986, responsible for all jewelry buying. An unexpected series of events accelerated her climb up the corporate ladder. The first was Buffett's decision in 1989 to purchase 80 percent of the company (later increased to 90 percent), which put her career in the hands of a man known for being a meritocrat. Then in September 1991, Ike Friedman died, and Alan left the company to pursue other interests. Alan's brother-in-law, Donald Yale, was named CEO and Jacques was promoted to senior vice president. Two years later, Yale's wife was diagnosed with cancer and he resigned to take care of her and their five young children.

A few days later, Jacques got the call that changed her life. She was only 34 when Buffett summoned her to Berkshire Hathaway, a short distance from Borsheim's superstore. "I presumed he was meeting with all of the executive management team to talk about the future," she recalls. "He said, 'Susan, I want you to consider taking over the president's job.' I was dumbfounded. I couldn't speak."

Jacques still wonders why Buffett picked her. "I had three strikes against me. I was very young, female and, unlike most jewelers in the United States, a goy. What I had going for me was a great relationship with our vendors and the outlook that business is based on trust.

Miles says Jacques essentially fits the profile of a Buffett CEO. "He always promotes from within, with only one exception," he says, referring to Stan Lipsey, CEO of The Buffalo News. "Susan also perfectly exemplifies Warren 's concept of meritocracy. It isn't whom you know that counts or what country clubs you belong to-it's who you are. Susan doesn't even belong to a country club; she goes camping with her kids."

While other Berkshire CEOs say they rarely see their benefactor, they are not located down the block from Buffett's headquarters. "Mr. Buffett used to come by a lot more than he does now," she says. "There were many Saturday mornings when the doors would open at 10 and he'd drop in, but he has never interfered. Things are different now due to his celebrity. I miss seeing him, actually."

Close proximity to Berkshire Hathaway has other benefits. Jacques hosts a big cocktail party every year when the other Buffett CEOs gather for the company's annual shareholder meeting. When the CEOs or one of Buffett's close friends need jewelry, they usually shop at Borsheim's. Lipsey bought his wife's engagement ring there as did Chuck Huggins, CEO of See's Candies.