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Berkshire Hathaway disclosed that Greg Abel will make $25 million in his new CEO role.
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Abel’s pay is a significant increase from Warren Buffett‘s famous $100,000 salary.
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Abel is expected to maintain Berkshire Hathaway’s investment philosophy.
Berkshire Hathaway is paying its new CEO, Greg Abel, $25 million each year, a big bump from Warren Buffett’s pay.
The company disclosed Abel’s annual cash salary in a filing with the Securities and Exchange Commission on Tuesday. He took on the role at the Omaha-based company on January 1.
Buffett, who retired last year, famously took an annual salary of $100,000 with no bonus or stock awards for over 40 years. Bloomberg estimates his net worth at $150 billion, the tenth-richest person in the world.
As Berkshire Hathaway’s former CEO and current chairman, Buffett recommended to his board of directors how much he should be paid and set compensation for Abel and other executives.
Abel, who was previously Buffett’s deputy, was paid $21 million last year. CEOs of S&P 500 companies were paid an average of $18.9 million in 2024.
At Berkshire’s annual shareholder meeting last year, Buffett, who is 95, announced that he would be stepping down after 55 years as the conglomerate’s CEO. Hours later, the board unanimously voted for Abel to replace him.
“I think the time has arrived where Greg should become the chief executive of the company at year end,” Buffett told the audience at the meeting.
Abel, 62, has been Berkshire Hathaway’s vice chair of non-insurance operations since 2018. He’s also chair of Berkshire Hathaway Energy, which Buffett hailed as one of the conglomerate’s four “jewels” in his annual shareholder letter in 2021, the same year Buffett first tapped Abel as his successor.
Investors expect Abel to maintain the company’s current investment philosophy. He is known for having a more hands-on leadership style than Buffett.
Read the original article on Business Insider
