Berkshire Hathaway just increased its new chief executive Greg Abel’s annual salary to $25 million, a huge rise from the $100,000 Warren Buffett took for more than 40 years.
Why the pay jump matters
The change comes right after Buffett stepped down from day‑to‑day duties at the end of December. While Buffett will stay on as chairman, Abel is now the first CEO in over six decades to run the company.
Salary history at a glance
- 2022: $16 million salary + $3 million bonus
- 2023: $20 million salary
- 2024: $21 million salary
- 2025: $25 million salary (new level)
How the compensation differs from Buffett’s style
Buffett has always kept his own pay modest, saying the company’s pay philosophy should be “different” from most public firms. He also set the same pay package for vice‑chairman Ajit Jain, who runs Berkshire’s insurance arm, through 2024.
Abel’s ties to Berkshire
Abel already owns about $171 million of Berkshire stock. In 2022 he sold a 1 % stake in Berkshire Hathaway Energy for $870 million, further linking his wealth to the company’s performance.
What investors should watch
Higher executive pay can signal confidence in the new leader, but it also raises questions about alignment with shareholders. With Abel at the helm, investors will be looking for any shifts in strategy or performance across Berkshire’s many businesses, from insurance and railroads to energy and consumer brands.
Disclaimer
Remember, this is my perspective, not a prediction. Do your own research and consider your own risk tolerance before making any investment decisions.