OMAHA, Neb. — Greg Abel, who officially stepped into the role of chief executive at Berkshire Hathaway on January 1, has received a significant salary increase as he assumes leadership of the investment conglomerate long steered by Warren Buffett. According to a filing with the U.S. Securities and Exchange Commission on Tuesday, Abel's annual cash salary will now stand at $25 million, up from his previous compensation as the company's vice chairman of non-insurance operations.
The raise, effective immediately upon Abel's ascension to the top job, marks a notable shift in executive pay at Berkshire Hathaway, a company known for its frugal approach to salaries under Buffett's tenure. Prior to this promotion, Abel earned $21 million in salary in 2024, along with $17,250 in other compensation, as detailed in a 2025 regulatory filing. In contrast, Buffett himself maintained a modest annual salary of $100,000 in 2024, supplemented by $305,111 in other compensation, reflecting the legendary investor's long-standing philosophy of minimal personal remuneration.
Abel's appointment as CEO culminates a carefully orchestrated succession plan at Berkshire Hathaway, one that Buffett has publicly endorsed with enthusiasm. In a May interview with CNBC's Becky Quick, Buffett expressed unwavering confidence in his successor, stating, "I would rather have Greg Abel handle my money than any of the top investment advisers or any of the top CEOs in the United States." This glowing assessment underscores the trust Buffett places in Abel, who has been groomed for the position over more than two decades within the organization.
"It is a huge endorsement, but it's an endorsement we've made," Buffett added in the same interview, emphasizing the deliberate nature of the board's decision. Abel, a Canadian native who joined Berkshire in 2000 through the acquisition of MidAmerican Energy, rose through the ranks to oversee major subsidiaries including Berkshire Hathaway Energy, BNSF Railway, and various manufacturing and retail operations. His oversight of these non-insurance businesses positioned him as a natural heir to Buffett's empire, which spans insurance, railroads, utilities, and consumer goods.
The SEC filing, submitted on January 6, 2026, provides a snapshot of the transition at one of America's largest companies by market capitalization. Berkshire Hathaway, with its diverse portfolio including stakes in Apple, Coca-Cola, and American Express, reported a market value exceeding $900 billion as of late 2025. Abel's new salary, while substantial, pales in comparison to the compensation packages at peer firms like JPMorgan Chase or Goldman Sachs, where CEOs often receive tens of millions in total pay including bonuses and stock awards.
Buffett, who turned 95 in August 2025, announced his intention to step down as CEO in 2024, citing the need for fresh leadership to navigate an increasingly complex global economy. The transition was smooth, with Buffett remaining in his role as chairman and retaining significant influence over investment decisions. Abel, 63, brings a reputation for operational expertise rather than Buffett's famed stock-picking prowess, a division of labor that analysts say could stabilize the company's vast operations.
Industry observers have noted that Abel's salary adjustment aligns with the demands of leading a conglomerate that generated $364 billion in revenue in 2024. "This is a recognition of the responsibilities he's now shouldering," said one financial executive who spoke on condition of anonymity due to ongoing business ties with Berkshire. The raise also comes amid broader discussions about executive compensation in corporate America, where shareholders increasingly scrutinize pay gaps between top leaders and average workers.
Under Abel's predecessor, Buffett famously kept his salary frozen at $100,000 since 1978, a figure that symbolized his focus on shareholder value over personal gain. This approach extended to other executives, with total compensation for top leaders historically modest by Wall Street standards. Abel's jump to $25 million, while a increase from his prior role, still reflects Berkshire's restraint compared to Silicon Valley tech giants, where CEOs like Apple's Tim Cook earned over $99 million in 2024.
The filing also highlights the continuity in Berkshire's governance structure. Vice Chairman Greg Abel now reports directly to the board, with Buffett's son, Howard Buffett, expected to assume the non-executive chairman role to preserve the company's culture. This setup, outlined in Buffett's annual letters to shareholders, aims to mitigate any disruption following the founder's departure from day-to-day management.
Abel's track record includes steering Berkshire Hathaway Energy through major expansions, including renewable energy projects that now account for a significant portion of the company's utility operations. In 2024, the energy subsidiary reported profits of $3.2 billion, contributing to Berkshire's overall operating earnings of $37.4 billion for the year. His promotion was first hinted at during Berkshire's annual meeting in May 2025, where Buffett reiterated his succession plans to thousands of shareholders gathered in Omaha.
Reactions to the salary news have been mixed among investors and analysts. Some view it as a well-deserved reward for Abel's loyalty and performance, while others question whether it signals a departure from Buffett's cost-conscious ethos. "Berkshire has always prioritized long-term value over short-term perks," noted a portfolio manager at a major investment firm, speaking to the broader implications for the company's identity post-Buffett.
Looking ahead, Abel faces challenges including navigating interest rate fluctuations, regulatory pressures on railroads and utilities, and maintaining Berkshire's insurance underwriting discipline. The company's Class A shares rose 1.2% in early trading on January 6, reflecting market approval of the seamless handover. Buffett, in his final annual letter as CEO released in February 2025, praised Abel's "integrity and business acumen," qualities he believes will sustain Berkshire's success for decades.
As Abel settles into his new role, all eyes are on how he will balance operational oversight with the investment legacy left by Buffett. With a salary that acknowledges his elevated status but remains grounded in Berkshire's traditions, Abel's leadership could define the next chapter for the conglomerate. Investors, long accustomed to Buffett's folksy wisdom, will be watching closely for signs of continuity amid change.
The SEC filing also discloses that Abel's total compensation may include additional elements such as security costs or travel reimbursements, though specifics beyond the base salary were not detailed. This transparency aligns with Berkshire's commitment to regulatory compliance, a hallmark of its operations under both Buffett and now Abel.
In the weeks following the announcement, Berkshire Hathaway continues to operate as a beacon of stability in volatile markets, with Abel at the helm poised to build on a foundation laid over six decades. Whether his tenure will match Buffett's legendary returns remains to be seen, but the initial steps, including this salary adjustment, suggest a pragmatic approach to leadership in the modern era.