At the end of 2025, Warren Buffett concluded a 60-year tenure as CEO and Chairman of Berkshire Hathaway, handing the reins to Greg Abel. Abel, previously Vice Chairman of non-insurance operations and head of the company’s energy businesses, assumes leadership of the conglomerate overseeing insurance, utilities, manufacturing and services. The board cited Abel’s 15 years of management experience within Berkshire’s diversified portfolio and his role in delivering a compound annual growth rate of 8.7% in the regulated energy segment as key factors in their decision.

Greg Abel’s compensation package marks a stark departure from Buffett’s longstanding pay structure. Under a recent SEC filing, Abel will receive a base salary of $25 million per year, compared with the $100,000 that Buffett accepted annually for more than four decades. In 2024, Abel’s total compensation as Vice Chairman was $21 million, underscoring the company’s shift toward market-competitive executive pay. The board emphasized that the adjustment reflects Abel’s expanded responsibilities and aligns with peer group benchmarks for leadership of a $900 billion-plus conglomerate.

Buffett’s refusal to accept raises since the early 1980s underscored his focus on long-term shareholder value over executive enrichment. The board’s 2025 disclosure reaffirmed a policy that excludes corporate profitability and stock performance from compensation calculations for any officer. During Buffett’s tenure, Berkshire covered $305,111 in personal security and home protection costs in 2024, and he voluntarily reimbursed the company for personal postage and delivery expenses each year. This ethos of frugality and alignment with shareholder interests remains embedded in Berkshire’s culture.

The succession plan also highlights stock ownership as a critical element of executive alignment. As of the most recent proxy filing, Greg Abel holds 228 Class A shares and 2,363 Class B shares of Berkshire Hathaway, representing his personal commitment to the company’s performance. In contrast, Buffett retained 206,359 Class A shares and 951 Class B shares as of March 2025. The board views these ownership stakes as vital in motivating the new CEO to steward the conglomerate with the same capital-allocation rigor that generated Berkshire’s compounded book-value growth of 20% per annum since 1965.