With the change in leadership at Berkshire, the compensation culture is also changing. The new CEO Abel earns many times what his predecessor Buffett accepted for decades.
• Greg Abel took over the CEO position at Berkshire Hathaway from Warren Buffett on January 1, 2026
• Abel’s salary is 250 times higher than Buffett’s long-term compensation of $100,000 annually
• Buffett gave up bonuses, stock options or salary increases for over 40 years
A historic change at the top
On January 1, 2026, Greg Abel officially assumed the position of President and CEO at Berkshire Hathaway. The 63-year-old Canadian succeeds Warren Buffett, who led the company for six decades and built it from a struggling textile manufacturer into a conglomerate with a market value of over a trillion dollars. Buffett, now 95 years old, will remain with the company as chairman of the board of directors.
The announcement of the leadership change was made at the annual general meeting on May 3, 2025, when Buffett declared that the time had come for Abel to take over at the end of the year. Just a few hours later, the board voted unanimously for Abel as his successor.
$25 million annually – a new era of compensation
As per an SEC filing dated January 6, 2026, Greg Abel receives an annual cash salary of $25 million. The new Berkshire boss earns 250 times more than his predecessor. Warren Buffett famously stuck to an annual salary of just $100,000 for more than 40 years – without bonuses or stock options.
According to Reuters, Abel’s compensation marks a significant break with the company’s previous compensation culture. The salary is certainly in line with industry standards: the median CEO compensation in the S&P 500 was around $18.9 million in 2024. As Vice Chairman of Non-Insurance Operations, Abel received a salary of $21 million in 2024, and his new salary is now another 19 percent higher.
Buffett’s humble philosophy
Buffett’s minimal compensation always reflected his belief that CEO pay should reflect the long-term interests of shareholders. Since most of his estimated wealth of around $150 billion is already tied up in Berkshire shares, he saw no need for high cash salaries. At the 2017 annual general meeting, Buffett expressed the hope that his successor would already be wealthy enough not to be driven by excessive compensation.
Abel brings over 25 years of experience in the Berkshire universe. He joined the group in 1999 through the acquisition of MidAmerican Energy, later led what is now Berkshire Hathaway Energy as CEO and was promoted to vice chairman in 2018. Buffett himself praised his successor in a CNBC interview, saying he would rather have his money managed by Abel than any other top investment advisor or CEO in the US.
D. Maier / editorial team finanzen.net
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