Greg Abel’s $25M Paycheck: A New Era for Berkshire Hathaway
The Oracle of Omaha’s legendary frugality has officially made way for a modern compensation package.
Greg Abel, who succeeded Warren Buffett as Berkshire Hathaway’s CEO on January 1, will earn a $25 million cash salary this year—a 19% increase from his 2024 pay as vice chairman. This figure starkly contrasts with Buffett’s decades-long stance of taking just $100,000 annually, a philosophy rooted in his massive personal stake in the company.
However, Abel’s compensation aligns with the complexities of a modern conglomerate. While his pay exceeds the S&P 500 median of $18.9 million, it remains modest compared to the $1 trillion milestone-based package recently approved for Elon Musk at Tesla. Abel is a Berkshire veteran who joined in 2000 and has operated Berkshire Hathaway Energy, earning Buffett’s public endorsement as the ideal steward for shareholder capital.
Buffett, the world’s 10th-richest person with a $150 billion net worth tied to Berkshire stock, remains chairman. Abel’s elevation signals that while the leadership style has shifted, the focus remains on operational excellence and long-term growth. For investors, this transition offers a blend of continuity and a recalibrated approach to executive value, proving that even in the world’s most pragmatic investing empire, compensation evolves with responsibility.
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