In fiscal 2025, Berkshire Hathaway’s newly appointed CEO Greg Abel received a base salary of $25 million, a dramatic increase from Warren Buffett’s long-standing $100,000 cash salary. When factoring in stock awards and options, Abel’s total compensation package places him above the S&P 500 median CEO payout of just over $16 million, though he remains slightly below the top 100 earners, most of whom exceed $25 million once noncash awards are included. Industry analysts note that as leader of one of the 10 largest U.S. companies by market capitalization, Abel’s remuneration aligns with peer expectations for executives of comparable scale.

Warren Buffett built his current $150 billion net worth through decades of share gains rather than cash compensation. During his tenure, he not only capped his salary at $100,000 but also returned roughly half of it to the company to cover personal and security expenses. Buffett has donated shares now valued at approximately $200 billion. In contrast, Abel’s stock holdings—disclosed in the 2025 proxy—are valued at about $171 million, a figure investors describe as substantial but modest relative to his cash compensation.

In Greg Abel’s first full week as CEO, Berkshire Hathaway A shares slightly appreciated but trailed the S&P 500 by roughly one percentage point. For the year-to-date period, including the latest declines, Berkshire shares lagged the S&P by approximately 2.5 percentage points, whether dividends are counted or not. Over the prior twelve months, using Berkshire’s preferred metric (total return with dividends), the S&P outperformed Berkshire A shares by 7.0 percentage points, highlighting the challenge Abel faces in matching his predecessor’s long-term market leadership.

Proxy statements reveal Buffett’s earlier proposals for successor compensation structures, including performance-linked strike price adjustments on options designed to reflect retained earnings growth. Organizational behavior experts suggest that Abel’s elevated pay marks a shift toward conventional corporate governance norms. While Buffett emphasized finding a leader “not motivated by ten times more money,” academic observers note that long-term wealth can alter executive behaviors, making Berkshire’s full cultural transition likely to unfold over many years.