Berkshire Hathaway announced on Tuesday that it has increased the compensation of its new CEO, Greg Abel, to $25 million, a figure that far exceeds the $100,000 annual salary that his predecessor, Warren Buffett, received for more than four decades.
Abel, 63, officially took over as CEO of Berkshire Hathaway on January 1. He previously served as the company's vice chairman for eight years, responsible for managing Berkshire's non- insurance businesses. business.
According to Berkshire Hathaway's filing with U.S. Securities and Exchange Commission According to the figures disclosed in the SEC's regulatory filings, Abel's compensation this year will increase by 19% compared to 2024, when his salary was $21 million. Going back further, Abel's salary was $20 million in 2023 and $16 million plus a $3 million bonus in 2022.
During his tenure as vice chairman of the company, Abel's compensation was personally set by Buffett. Buffett also set the same compensation for Ajit Jahn, the vice chairman in charge of Berkshire Hathaway's insurance business , for the period from 2022 to 2024.
The salaries of Abel and Jain in 2025 have not yet been disclosed.
Warren Buffett, 95, led the globally renowned Omaha, Nebraska-based company for over 60 years before officially stepping down as CEO on December 31st of last year. He transformed what was once a near-bankrupt textile company into a diversified conglomerate with assets exceeding one trillion dollars, owning nearly 200 companies, including Geico auto insurance, BNSF railroad, and numerous insurance , energy, manufacturing, and retail businesses.
According to a filing with the SEC, Buffett's annual salary remained at $100,000 for more than 40 years as CEO.
Of course, receiving an annual salary is largely symbolic for Buffett himself. His substantial holdings of Berkshire Hathaway stock already place him firmly among the world's richest people. According to the Bloomberg Billionaires Index, Buffett's net worth is currently estimated at approximately $150 billion.
Warren Buffett remains chairman of Berkshire Hathaway. The company has stated in regulatory filings that its executive compensation plan differs from that of most publicly traded companies.
Abel currently holds approximately $171 million worth of Berkshire Hathaway stock and sold his 1% stake in Berkshire Hathaway Energy to Berkshire Hathaway in 2022 for $870 million.
(Article source: CLS)
