Berkshire Hathaway New CEO Gets 250 Times Buffett's Salary
Finn's Take· TL;DR- Greg Abel's $25 million CEO salary is 250 times Buffett's $100,000 annual pay, marking a major shift toward conventional corporate compensation structures at Berkshire Hathaway.
- Abel, 63, replaces the 95-year-old Buffett after eight years as vice chairman, with Buffett himself approving the unusually high compensation package before stepping down.
- The pay increase signals even ultra-conservative companies must adopt modern compensation practices to attract talent, though Buffett remains chairman and maintains visible oversight.
A Historic Leadership Transition
Greg Abel officially became CEO of Berkshire Hathaway on January 1, with his annual cash salary immediately rising to $25 million according to a Tuesday SEC filing . This compensation package far eclipses the modest $100,000 that his legendary predecessor Warren Buffett earned for decades in the role . Abel, 63, replaced Buffett, who led the Omaha-based conglomerate for more than 60 years .
The move marks a major shift for Berkshire, as Buffett famously accepted a modest annual salary of $100,000 for over four decades while building the company into a business valued at more than $1 trillion . The compensation disclosed in the SEC filing marks a break from the practice of Abel's predecessor, who famously took a modest $100,000 annual salary for over 40 years .
Abel's Rising Compensation Track Record
Prior to becoming CEO, Abel earned a salary of $21 million in 2024, $20 million in 2023, and $16 million plus a $3 million bonus in 2022 . Before becoming CEO, Abel spent eight years as vice chairman overseeing Berkshire's non-insurance businesses . His compensation during those years was set by Buffett himself .
The move places Abel's pay well above the median compensation for S&P 500 CEOs, which was roughly $18.9 million in 2024 . Berkshire Vice Chairman Ajit Jain, who oversees the company's insurance operations, received the same compensation as Abel from 2022 through 2024 . Abel also owns about $171 million of Berkshire stock, and in 2022 sold his 1% stake in the Berkshire Hathaway Energy business to Berkshire for $870 million .
Buffett's Endorsement and Continued Role
Buffett, now 95, remains chairman of Berkshire Hathaway and continues to play a visible role in the company . He has openly praised Abel as his successor, once telling CNBC that he would trust Abel with his own money more than "any of the top investment advisers or any of the top CEOs in the United States" . Reports indicate that it was the "Oracle of Omaha" himself who approved Abel's compensation at this unusually high level, underscoring the confidence Buffett has placed in his chosen successor .
Abel's elevation to CEO reflects decades of operational experience inside Berkshire, especially through Berkshire Hathaway Energy, which he helped turn into one of the largest U.S. power providers. He joined Berkshire in 2000 through its acquisition of MidAmerican Energy and since 2018 has taken on the role of vice chairman of non-insurance operations .
What This Means for Corporate America
Under Abel's leadership, Berkshire appears to be transitioning toward a more conventional executive pay structure . During Buffett's leadership, Berkshire had said in regulatory filings that its executive compensation program was "different" from that at most public companies . The dramatic salary increase signals that even the most conservative corporate cultures may need to adapt to modern compensation expectations to attract and retain top talent.
This transition represents more than just a change in leadership compensation philosophy. As Berkshire evolves from Buffett's unique management style to a more traditional corporate structure, investors will be watching closely to see how Abel navigates the company's vast portfolio of nearly 200 businesses while maintaining the disciplined investment approach that made Berkshire legendary.