On December 8th local time, ahead of Warren Buffett's impending end of his term as CEO, Berkshire Hathaway issued a statement announcing a major reshuffle of its management team, with the departure of Todd Combs being the most noteworthy.
Combs previously served as an investment manager at Berkshire Hathaway and head of its GEICO insurance division. The company's CEO, who joined Berkshire Hathaway in 2010 from his hedge fund Castle Point, was responsible for managing Berkshire's investment portfolio alongside Ted Weschler and was once considered a key figure in Buffett's succession plan. Nancy Pierce, COO of GEICO, will succeed Combs as CEO of GEICO.
"Todd has resigned to accept a position at JPMorgan Chase." "This is an interesting and important position," Buffett said in a Berkshire Hathaway statement. "Todd has recruited many talented people for GEICO, broadening the company's horizons. JPMorgan Chase has made the right decision as always."
JPMorgan Chase confirmed that Todd will become the new head of the bank's Security and Resilience Initiative, a $10 billion fund that seeks direct equity investment opportunities in industries such as defense, aerospace, healthcare, and energy, with the aim of driving business growth in the United States.
“Todd Combs is one of the most outstanding investors and leaders I know, and he has managed investments for many years alongside Warren Buffett, one of the most respected and successful long-term investors of our time,” JPMorgan Chase CEO Jamie Dimon said in a statement. “During his nine years on our board of directors, he has a deep understanding of how companies operate and supports our mission to make the world a safer and better place.”
Combs, who has served on the board of directors of JPMorgan Chase since 2016, will join JPMorgan Chase in January next year and report to Dimon.
Another noteworthy change is that Marc Hamburg, Berkshire Hathaway's CFO for 40 years, will retire in 2027, and Charles Chang, CFO of Berkshire Hathaway's energy business, will succeed him. Buffett commented, "Marc is indispensable to Berkshire and to me. His contributions to the company far exceed what many shareholders realize."
At the same time, Berkshire Hathaway also announced other personnel changes. Adam Johnson, CEO of NetJets Private Jet, will also serve as president of Berkshire Hathaway's Consumer Products, Services, and Retail businesses. Berkshire will also create a new position of General Counsel for the first time, previously relying primarily on external law firms for legal matters; Michael O'Sullivan will assume the role in 2026.
The remaining non- insurance businesses , including industrial products, construction products, BNSF railroad business, Berkshire Hathaway Energy, Pilot, and McLane, will continue to be directly managed by Greg Abel after he takes over as Berkshire CEO on January 1, 2026.
Warren Buffett, who is 95 years old, plans to step down as CEO of Berkshire Hathaway at the end of 2025, handing over the company he has led for more than 60 years to 63-year-old Vice Chairman Greg Abel, but he will retain the position of chairman.
Berkshire Hathaway stated that these management appointments reflect the company's consistent principle in selecting managers: those who identify with and uphold the company culture and possess outstanding business acumen. Leaders with sound judgment and the ability to implement Berkshire Hathaway's unique operating model. Berkshire has laid a solid foundation for future growth and will continue to maintain a strong growth momentum.
(Source: The Paper)
