Greg Abel has received a substantial salary increase following his appointment as CEO of Berkshire Hathaway on January 1, 2025. According to a filing with the U.S. Securities and Exchange Commission, Abel will now earn an annual cash salary of $25 million in his new role as chief executive.

Leadership Transition and Compensation Details

The salary increase took effect on the same day Abel assumed the CEO position, replacing Warren Buffett who had led the conglomerate for decades. Prior to his promotion, Abel served as vice chairman overseeing Berkshire's non-insurance businesses.

Previous Compensation Structure

In his former role as vice chairman, Abel earned $21 million in 2024, along with $17,250 classified as other compensation, according to regulatory filings. The promotion to CEO represents a salary increase of $4 million annually from his previous compensation package.

Buffett's Endorsement and Compensation Comparison

Warren Buffett has consistently expressed strong confidence in Abel's leadership capabilities. Speaking to CNBC International in May, Buffett stated he would prefer Abel to manage his money over "any of the top investment advisers or any of the top CEOs in the United States." Buffett described this as "a huge endorsement" that the company has made.

In contrast to Abel's compensation, Buffett earned a modest annual salary of $100,000 in 2024, plus $305,111 in other compensation, according to the SEC filing. This significant difference highlights the transition in operational responsibilities from Buffett to Abel.

Corporate Governance and Succession Planning

The compensation adjustment reflects Berkshire Hathaway's commitment to ensuring competitive executive compensation as part of its long-planned succession strategy. Abel's appointment as CEO marks the end of Buffett's direct day-to-day control of the conglomerate's operations, though Buffett's continued involvement in the company remains significant.

Warren Buffett officially stepped down as CEO of Berkshire Hathaway after six decades, formally passing leadership to Greg Abel with an unprecedented endorsement of both his successor and the company's future prospects. In a special interview with CNBC, Buffett declared that Berkshire "has a better chance of still being around 100 years from now than any other company I can think of."

The transition marks the end of Buffett's remarkable tenure that transformed Berkshire from a struggling textile operation into a trillion-dollar conglomerate. Abel, who joined Berkshire with the MidAmerican Energy acquisition and has served as vice chairman overseeing non-insurance operations since 2018, now leads one of America's largest investment companies.

Leadership Transition and Buffett's Strong Endorsement

Buffett expressed extraordinary confidence in Abel's capabilities, stating he "can't imagine how much more he can get done in a week than I can in a month." The legendary investor went further, declaring he would "rather have Greg managing my money than any of the top investment advisors or any of the top CEOs in the United States."

The transition occurred quietly on Thursday, with Buffett emphasizing that "Greg will be the decider" while he continues in his chairman role. Despite stepping down as CEO, Buffett plans to maintain his daily presence at Berkshire's Omaha office to support Abel during the transition.

Market Response and Performance Context

Berkshire shares traded lower following the leadership change, reflecting ongoing investor questions about whether Abel can successfully oversee the conglomerate's vast operating businesses and equity portfolio while maintaining premium valuations. The company's shares have underperformed the broader market since Buffett announced his retirement plans.

Strategic Position and Future Challenges

Abel inherits a financial powerhouse with more than $300 billion in cash on the balance sheet, providing substantial resources for future investments and acquisitions. However, he faces the challenge of preserving Berkshire's exceptional track record without its chief architect.

Annual Meeting Changes and Public Presence

Buffett indicated his public presence will diminish significantly, announcing he will not take the stage at Berkshire's annual shareholder meeting this year. This departure from long-standing tradition marks a symbolic end to an era that attracted tens of thousands of shareholders to Omaha annually. "Everything will be the same," Buffett said. "I'll come in. I won't be up there speaking at the annual meeting, but I'll be in the directors' section."

The transition represents one of corporate America's most significant leadership changes, as Berkshire begins its next chapter under Abel's guidance while maintaining the investment principles and business philosophy that made it one of the world's most successful conglomerates.