Berkshire Hathaway disclosed in an SEC filing that Greg Abel, who assumed the CEO role on January 1, will receive a cash salary of $25 million per year. This marks a 19% increase over his $21 million base pay in 2024, when he served as vice chair of non-insurance operations. Prior to that, Abel’s annual cash compensation was $20 million in 2023 and $16 million plus a $3 million bonus in 2022. The filing confirms that his new package includes no stock awards or long-term incentive grants, keeping the structure focused on cash remuneration.

Warren Buffett, who led Berkshire Hathaway for more than six decades before stepping down, famously capped his own salary at $100,000 per year. In 2024, Buffett received $100,000 in base salary and $305,111 in other compensation. Under Buffett’s guidance, executive pay was set with an emphasis on simplicity and alignment with shareholder interests. Buffett recommended Abel’s pay levels to the board, underscoring a continuity in governance even as total compensation for the CEO role rises by a factor of 250x relative to Buffett’s historic base pay.

The new CEO salary tops the S&P 500 average of $18.9 million for chief executives in 2024, placing Abel among the highest-paid leaders in the index. Investors will be watching how his compensation aligns with performance, particularly given Berkshire’s sprawling operations—including nearly 200 businesses across insurance, railroads, energy and manufacturing—and its $354 billion cash reserve. Abel already holds about $171 million in Berkshire stock and previously sold a 1% stake in Berkshire Hathaway Energy to the company for $870 million, signaling confidence in the conglomerate’s long-term prospects. Market participants expect Abel to adhere to Buffett’s value investing philosophy while potentially exploring strategic allocations of the substantial liquidity cushion.