Buffett Refused A Increase For Many years, His Successor Earns 250x Extra To Lead Berkshire Hathaway

Warren Buffett ended his multi-decade run because the CEO of Berkshire Hathaway Inc (NYSE:BRK)(NYSE:BRK) on the finish of 2025. Issues will look completely different for the conglomerate in 2026, together with how a lot the CEO is paid.

New CEO Greg Abel, who takes over from Buffett after serving in management roles for Berkshire’s vitality and non-insurance companies, has huge sneakers to fill.

Changing the legendary investor recognized to many because the “Oracle of Omaha” will likely be no simple job with buyers anticipating extra robust runs for the investing powerhouse’s inventory.

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Abel, in his new function, will likely be compensated considerably greater than Buffett was as the corporate’s CEO. Berkshire Hathaway lately introduced in a submitting that Abel will obtain a base wage of $25 million.

Buffett was beforehand paid a base wage of $100,000 as Berkshire CEO. This implies Abel will now makes 250 occasions greater than the value-investing legend within the function as CEO.

Buffett was additionally paid $305,111 in 2024 for private and residential safety prices, which had been paid by the corporate.

Not like many firms that pay inventory choices and inventory compensation, Berkshire Hathaway pays solely a wage and different prices.

Abel beforehand made $21 million because the Vice Chairman of Berkshire’s non-insurance operations in 2024. His 2025 compensation has not been introduced.

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The brand new CEO additionally owns shares within the firm. A 2025 submitting confirmed Abel proudly owning 228 Berkshire Hathaway Class A shares and a couple of,363 Class B shares.

Buffett owned 206,359 Class A shares and 951 Class B shares as of March 5, 2025. This represented 37.9% of Class A shares on the time.

Buffett took management of Berkshire Hathaway in 1965 and served within the function of CEO and Chairman for a lot of many years after that. The previous CEO is at the moment the tenth richest particular person on this planet, with a internet price of $150 billion, in line with Bloomberg. Buffett has pledged to offer away the vast majority of his fortune.

Buffett acquired a wage of $100,000 per yr for a lot of many years, refusing to be extremely compensated or obtain raises. The legendary investor selected as an alternative to point out his dedication to the corporate and shareholders.

“Resulting from Mr. Buffett’s need that his compensation stay unchanged, the Committee has not proposed a rise in Mr. Buffett’s compensation for the reason that Committee was created in 2004,” a Berkshire Hathaway submitting reads.

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The submitting stated Buffett’s annual compensation has been $100,000 for greater than 40 years with no plans to extend the quantity sooner or later.

“The Committee has established a coverage that neither the profitability of Berkshire nor the market worth of its inventory are to be thought of within the compensation of any government officer.”

Whereas Buffett’s house and private safety are paid for by Berkshire Hathaway, the billionaire did not have an organization automotive or corporate-owned plane for private use.

A earlier submitting stated that Buffett even reimburses Berkshire Hathaway on the finish of every yr for postage and supply charges that he made through the yr that had been for private use and never enterprise associated.

Recognized for his frugal way of life, Buffett has lived in the identical house for many years.

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