Berkshire Hathaway CEO Greg Abel Salary $25M

Berkshire Hathaway has officially announced the annual cash salary for its new CEO, Greg Abel. According to a filing with the Securities and Exchange Commission, Abel will earn $25 million in his new role. This compensation marks a substantial departure from the pay structure established by his predecessor, Warren Buffett.

Buffett, who retired last year, famously accepted an annual salary of $100,000 for more than four decades. The transition in leadership and compensation was formalized on January 1, when Abel took over the role. Despite the change in salary, investors anticipate that Abel will continue to uphold the company's long-standing investment philosophy.

The Securities and Exchange Commission filing on Tuesday revealed the specific details of the new executive compensation package. Berkshire Hathaway is paying its new CEO, Greg Abel, $25 million each year. This represents a significant increase from his previous earnings; Abel, who was previously Buffett's deputy, was paid $21 million last year.

The contrast between the new pay scale and the previous administration is stark. Warren Buffett's salary of $100,000 remained unchanged for over 40 years. He received no bonuses or stock awards during that time. Despite his modest salary, Bloomberg estimates Buffett's net worth at $150 billion, ranking him as the tenth-richest person in the world.

The compensation package places Abel's earnings above the average for major corporate leaders. In 2024, CEOs of S&P 500 companies were paid an average of $18.9 million. The filing confirms that Abel's base salary is now set at the $25 million level.

The succession plan was publicly detailed during Berkshire Hathaway's annual shareholder meeting last year. At age 95, Warren Buffett announced that he would be stepping down after 55 years as the conglomerate's CEO. He expressed confidence in his chosen successor, telling the audience, "I think the time has arrived where Greg should become the chief executive of the company at year end."

Following Buffett's announcement, the board of directors moved quickly to formalize the transition. Hours later, the board unanimously voted for Abel to replace him. Abel officially assumed the role at the Omaha-based company on January 1.

Buffett remains involved in the company's governance as chairman. In that capacity, he recommended to the board how much he should be paid and set the compensation for Abel and other executives. Buffett has previously praised Abel's performance, specifically highlighting his role as chair of Berkshire Hathaway Energy. In his 2021 annual shareholder letter, Buffett described the energy unit as one of the conglomerate's four "jewels."

Greg Abel, 62, has been preparing for this role for several years. He has served as Berkshire Hathaway's vice chair of non-insurance operations since 2018. Buffett first tapped Abel as his successor in 2021.

While Abel is expected to maintain Berkshire Hathaway's investment philosophy, he brings a different approach to management. He is known for having a more hands-on leadership style compared to Warren Buffett's famously detached management method. This shift in operational approach is something investors and industry analysts will be watching closely as Abel settles into the CEO position.