Greg Abel's Compensation Package Marks New Era at Berkshire Hathaway with 19% Salary Bump

Inside Berkshire’s Leadership Transition: What the New CEO’s $25 Million Salary Reveals

Greg Abel is stepping into the top role at Berkshire Hathaway with a dramatically different paycheck than his predecessor. The incoming CEO will command an annual base salary of $25 million—a stark contrast to Warren Buffett’s longtime $100,000 yearly compensation and representing a 19% increase from Abel’s own $21 million package in 2024.

This compensation shift reflects a fundamental change in how Berkshire Hathaway structures executive pay, marking one of the most significant transitions in the conglomerate’s history. As Buffett, now 95 years old, transitions from CEO to chairman, Abel inherits oversight of a sprawling empire: $382 billion in cash reserves, a $283 billion stock portfolio, and operations spanning insurance, utilities, railroads, and energy infrastructure.

The Context Behind Abel’s Elevated Compensation

While Abel’s $25 million salary represents a substantial raise, it pales in comparison to some recent mega-deals in the technology sector. Tesla shareholders, for instance, approved a staggering $1 trillion compensation package for Elon Musk last year, structured over a decade and tied to hitting specific performance milestones. Abel’s package, by contrast, remains relatively conservative by contemporary corporate standards.

Buffett’s famously modest salary was never reflective of his actual wealth. His substantial shareholdings in Berkshire Hathaway have positioned him among the world’s richest individuals, with a net worth estimated at $150 billion according to the Bloomberg Billionaires Index. Greg Abel’s net worth, while not approaching Buffett’s scale, has grown considerably through his tenure at the company.

Who Is Greg Abel and What’s His Track Record?

Abel’s path to the top began in 1999 when Berkshire acquired MidAmerican Energy. He took the helm of what became Berkshire Hathaway Energy in 2008, then expanded his influence significantly when promoted to vice chairman in 2018, overseeing all non-insurance business units. Buffett’s public selection of Abel as his successor signals confidence in his ability to navigate the conglomerate’s diverse portfolio and manage its substantial capital reserves.

The compensation adjustment reflects both the increased complexity of Abel’s new responsibilities and the market realities facing large corporations in attracting top-tier executive talent.