Berkshire Hathaway’s New CEO Has a Higher Salary Than Warren Buffett

Berkshire Hathaway is paying its new CEO, Greg Abel, $25 million every year, a giant bump from Warren Buffett’s pay.

The corporate disclosed Abel’s annual money wage in a submitting with the Securities and Trade Fee on Tuesday. He took on the position on the Omaha-based firm on January 1.

Buffett, who retired final yr, famously took an annual wage of $100,000 with no bonus or inventory awards for over 40 years. Bloomberg estimates his web value at $150 billion, the tenth-richest individual on this planet.

As Berkshire Hathaway’s former CEO and present chairman, Buffett advisable to his board of administrators how a lot he needs to be paid and set compensation for Abel and different executives.

Abel, who was beforehand Buffett’s deputy, was paid $21 million final yr. CEOs of S&P 500 corporations have been paid a median of $18.9 million in 2024.

At Berkshire’s annual shareholder meeting final yr, Buffett, who’s 95, introduced that he could be stepping down after 55 years because the conglomerate’s CEO. Hours later, the board unanimously voted for Abel to switch him.

“I feel the time has arrived the place Greg ought to grow to be the chief govt of the corporate at yr finish,” Buffett advised the viewers on the assembly.

Abel, 62, has been Berkshire Hathaway’s vice chair of non-insurance operations since 2018. He is additionally chair of Berkshire Hathaway Power, which Buffett hailed as one of many conglomerate’s 4 “jewels” in his annual shareholder letter in 2021, the identical yr Buffett first tapped Abel as his successor.

Traders anticipate Abel to take care of the corporate’s present funding philosophy. He’s recognized for having a extra hands-on management fashion than Buffett.