Berkshire Hathaway’s Abel Earns $25M as CEO While Shares Underperform S&P by 1%

BRK-ABRK-A

Greg Abel’s total compensation package at Berkshire Hathaway reached $25 million in 2024, placing him above the S&P 500 median CEO pay of $16 million but below most top-100 executives when including equity awards. In Abel’s first full week as CEO, Berkshire Hathaway A shares trailed the S&P 500 by roughly one percentage point, extending a year-to-date underperformance of 2.5 points and a 7.0-point lag over the past year.

1. Abel’s Compensation Elevates Berkshire to S&P 500 Leadership Bracket

In 2025, Greg Abel received a base salary and cash bonuses totaling $25 million as chief executive officer of Berkshire Hathaway’s Class A shares, a substantial increase over Warren Buffett’s historic $100,000 annual salary. When including stock awards and options, Abel’s compensation package surpassed the S&P 500 chief executive median of just over $16 million in 2024, though it remains slightly below the top-100 executives, most of whom exceeded $25 million in total pay. Industry analysts note that leaders of the 10 largest S&P 500 companies typically receive packages commensurate with that scale, and Abel’s package reflects Berkshire’s position among the nation’s largest corporations by market capitalization and revenue.

2. Abel’s Personal Stake Signals Confidence but Trails Buffett’s Legacy

According to Berkshire’s 2025 proxy statement, Abel holds approximately $171 million worth of Class A shares, a significant personal investment that aligns his interests with long-term shareholder value. By comparison, Buffett accumulated nearly all of his $150 billion net worth through share appreciation over decades and has donated shares now valued at $200 billion. While Abel’s stake represents a meaningful commitment, corporate governance experts suggest he could further demonstrate alignment by increasing his personal shareholdings. Investor Jonathan Boyar recently recommended that Abel deploy more of his own capital into Berkshire stock to bolster confidence in his leadership transition.

3. Early Performance Under Abel Shows Slight Underperformance

In the first full week after Abel officially assumed the CEO role, Berkshire Hathaway Class A shares recorded a modest gain but lagged the S&P 500 by about one percentage point. Year-to-date comparisons, including dividends, show Berkshire trailing the broader index by roughly 2.5 percentage points. Over the 12-month period ending January 2026, the S&P 500 with dividends outperformed Berkshire’s Class A shares by approximately 7 percentage points, underscoring the challenge Abel faces in maintaining Buffett’s long-standing record of market-beating returns.

Sources

CF