Greg Abel’s first act as Berkshire Hathaway’s chief executive was hardly ceremonial: effective Jan. 1, his annual cash salary rose to $25 million, a regulatory filing shows — a meaningful bump as he steps into the role Warren Buffett long occupied.
Abel, who had been vice chairman of Berkshire’s non‑insurance operations, assumed the CEO title at the start of the year. The raise — disclosed in an SEC filing published Tuesday — increases his cash pay from roughly $21 million in 2024 (plus nominal “other compensation”) to the new $25 million level. Bloomberg Law characterized the move as roughly a 19% increase in his first year leading the company.
“Warren’s endorsement matters,” Abel’s elevation recalls Buffett’s oft‑quoted confidence in him. As Buffett told CNBC in May, he’d “rather have Abel handle his money than any of the top investment advisers or any of the top CEOs in the United States.” That vote of confidence has now translated into a compensation package that, in cash terms, eclipses Buffett’s long‑reported $100,000 annual salary.
Why the raise matters — and what it signals
There’s a few ways to read the change. First, it’s practical: a newly appointed CEO typically receives pay adjustments to align incentives and attract retention in a high‑stakes job. Second, it’s symbolic. Berkshire’s cultural brand has long been intertwined with Buffett’s frugality; shifting that image subtly signals a transition from a founder’s-era stewardship to a professional CEO era where market pay norms matter more.
For investors and observers, the number is notable because it lands squarely in the conversation about executive pay at large U.S. companies. At the same time, Berkshire remains distinct: the company’s sprawling portfolio and decentralized operating model mean the CEO’s role differs from a traditional single‑company chief executive. Abel’s compensation will be watched for clues about how Berkshire intends to balance hands‑off ownership with centralized strategy under new leadership.
Details in the filing are straightforward. In 2024, Abel’s base pay was reported at about $21 million plus $17,250 labeled as “other compensation.” The new filing simply sets his annual cash salary at $25 million effective the day he became CEO. Buffett’s own pay in 2024 remained $100,000 in base salary, with some other compensation disclosed separately.
What this won’t answer — at least not immediately — is how long Berkshire will maintain this level of cash compensation, how long‑term incentives might be structured, or whether the company will begin to more closely mirror peer‑group pay practices. Those are often matters for subsequent filings and proxy disclosures.
Still, for shareholders who have watched Buffett’s handover for years, the raise is a tangible milestone: succession has moved from planning to practice. Abel’s new pay package looks designed to match the expectations that come with running one of the world’s largest and most idiosyncratic conglomerates.
A few quick facts
- Effective date of increase: Jan. 1, 2026 (the day Abel became CEO).
- New annual cash salary: $25 million.
- Abel’s 2024 pay: about $21 million plus $17,250 in other compensation.
- Buffett’s 2024 base salary: $100,000.
This marks the beginning of a new chapter at Berkshire: a reminder that leadership transitions reshape not only strategy and culture, but payroll lines on the company’s most visible documents.