Berkshire Hathaway's new CEO has a much higher salary than Warren Buffett did

• Berkshire Hathaway disclosed that Greg Abel volition marque $25 cardinal successful his caller CEO role.

• Abel's wage is simply a important summation from Warren Buffett's celebrated $100,000 salary.

• Abel is expected to support Berkshire Hathaway's concern philosophy.

Berkshire Hathaway is paying its caller CEO, Greg Abel, $25 cardinal each year, a large bump from Warren Buffett's pay.

The institution disclosed Abel's yearly currency wage successful a filing with the Securities and Exchange Commission connected Tuesday. He took connected the relation astatine the Omaha-based institution connected January 1.

Buffett, who retired past year, famously took an yearly wage of $100,000 with nary bonus oregon banal awards for implicit 40 years. Bloomberg estimates his nett worthy astatine $150 billion, the tenth-richest idiosyncratic successful the world.

As Berkshire Hathaway's erstwhile CEO and existent chairman, Buffett recommended to his committee of directors however overmuch helium should beryllium paid and acceptable compensation for Abel and different executives.

Abel, who was antecedently Buffett's deputy, was paid $21 cardinal past year. CEOs of S&P 500 companies were paid an mean of $18.9 cardinal successful 2024.

At Berkshire's yearly shareholder gathering past year, Buffett, who is 95, announced that helium would beryllium stepping down aft 55 years arsenic the conglomerate's CEO. Hours later, the committee unanimously voted for Abel to regenerate him.

"I deliberation the clip has arrived wherever Greg should go the main enforcement of the institution astatine twelvemonth end," Buffett told the assemblage astatine the meeting.

Abel, 62, has been Berkshire Hathaway's vice seat of non-insurance operations since 2018. He's besides seat of Berkshire Hathaway Energy, which Buffett hailed arsenic 1 of the conglomerate's 4 "jewels" successful his yearly shareholder missive successful 2021, the aforesaid twelvemonth Buffett archetypal tapped Abel arsenic his successor.

Investors expect Abel to support the company's existent concern philosophy. He is known for having a much hands-on enactment benignant than Buffett.

Read the archetypal nonfiction connected Business Insider