Greg Abel's $25M Salary: 250x Jump From Buffett's $100K at Berkshire

Berkshire’s incoming CEO Greg Abel will earn $25M annually—250x Warren Buffett’s $100K. Abel will manage $382B cash and $283B stock portfolio as Buffett, 95, steps down in January but remains chairman.

The $25 Million Question: Why The Massive Pay Jump?

Berkshire Hathaway Inc. announced that Greg Abel, the incoming Chief Executive Officer, will be paid an annual base salary of $25 million. This figure is a significant jump from the $100,000 yearly salary that Warren Buffett, his predecessor, received for many years—representing a 250x multiplier that raises eyebrows across corporate governance circles.

During the company’s annual meeting in May, Warren Buffett, now 95, shared that he would step down as CEO in January, passing leadership to Abel. Buffett will continue as chairman of Berkshire Hathaway, which oversees a diverse portfolio including insurance, utilities, railroads, and a stock portfolio valued at $283 billion as of September 30.

According to regulatory documents, Abel’s new compensation represents a 19% increase from his $21 million salary in 2024. Including additional compensation forms, his total earnings were slightly higher. As CEO, Abel will oversee management of Berkshire’s substantial $382 billion in cash reserves—a responsibility few corporate leaders face at this scale.

Greg Abel’s Compensation Breakdown

Base Salary: $25 million annually

2024 Compensation: $21 million (19% increase to 2025)

Responsibilities: Managing $382B cash, $283B stock portfolio, insurance, utilities, railroads

Comparison to Buffett: 250x higher than Buffett’s $100K annual salary

Buffett’s modest salary was unusual among corporate leaders, but his substantial holdings in Berkshire Hathaway have made him one of the world’s wealthiest individuals, with an estimated net worth of $150 billion as reported by the Bloomberg Billionaires Index. His wealth came from stock appreciation rather than salary, making the $100K figure symbolic rather than indicative of total compensation.

Salary BOT Analysis: How Abel’s Pay Compares

When analyzing executive compensation using Salary BOT tools and corporate pay databases, Abel’s $25 million base represents interesting position in the compensation spectrum. Salary BOT systems tracking S&P 500 CEO pay show median total compensation around $15-18 million, making Abel’s base alone above-median before including bonuses or equity grants.

Although Abel’s pay package surpasses Buffett’s, it remains modest compared to some massive incentive deals recently awarded to technology executives. For example, Tesla shareholders approved a $1 trillion compensation plan for Elon Musk last year, which spans a decade and is contingent on meeting specific performance targets. This makes Abel’s compensation look positively restrained by comparison.

Salary BOT comparisons with other conglomerate CEOs reveal Abel’s pay sits in reasonable range. General Electric’s CEO earned $21.7 million in 2024, while 3M’s CEO received $19.3 million. Considering Berkshire’s size—market cap exceeding $900 billion—Abel’s $25 million actually represents lower pay-to-company-size ratio than many peers.

The 19% year-over-year increase aligns with Salary BOT data showing CEO pay rising 12-15% annually across major corporations during strong economic periods. Abel’s slightly higher bump likely reflects the elevation to CEO role from vice chairman, representing promotion rather than mere annual adjustment.

Greg Abel: The Handpicked Successor

Handpicked by Buffett as his successor, Abel joined Berkshire in 1999 when the company acquired a controlling interest in MidAmerican Energy. He became CEO of what would become Berkshire Hathaway Energy in 2008 and was promoted to vice chairman of Berkshire Hathaway in 2018, taking charge of all non-insurance operations.

This 26-year tenure at Berkshire provides Abel with unparalleled institutional knowledge. Unlike external CEO hires requiring years to understand conglomerate complexities, Abel already operates the majority of Berkshire’s businesses. His promotion represents continuity rather than disruption—a hallmark of Buffett’s succession planning approach.

Abel’s track record at Berkshire Hathaway Energy demonstrates operational excellence. Under his leadership, the division became one of America’s largest utility operators while maintaining strong safety records and customer satisfaction metrics. He navigated complex regulatory environments, integrated major acquisitions, and invested billions in renewable energy infrastructure—all while generating consistent profits contributing to Berkshire’s overall success.

Buffett’s confidence in Abel is absolute. “Greg has been learning about Berkshire for 26 years,” Buffett stated at the annual meeting. “He understands our culture, he understands our businesses, and he has my complete confidence.” This endorsement from one of history’s most successful investors carries enormous weight, reassuring shareholders about the leadership transition.

Managing $382 Billion: The Real Challenge

As CEO, Abel will oversee management of Berkshire’s substantial $382 billion in cash reserves—one of the largest corporate cash hoards in history. This responsibility extends far beyond typical CEO duties, requiring strategic decisions about capital allocation that will shape Berkshire’s future for decades.

The cash management challenge is immense. Generating returns on $382 billion without taking excessive risks or overpaying for acquisitions requires discipline Buffett demonstrated throughout his career. Abel must balance deploying capital for growth with maintaining fortress-like balance sheet that protects Berkshire through economic downturns.

Investment decisions at this scale move markets. If Berkshire announces major acquisition or investment, target company valuations immediately adjust. This market impact constrains flexibility, as Abel cannot quietly accumulate positions the way Buffett did in Berkshire’s earlier, smaller days.

The $283 billion stock portfolio requires ongoing management as well. While Berkshire typically holds positions for years or decades, market conditions occasionally require adjustments. Abel must decide when to trim positions, when to add, and how to allocate capital between stock purchases and business acquisitions.

Why Abel’s Pay Remains Modest Despite The Jump

Abel’s $25 million salary, while 250x Buffett’s symbolic $100K, remains modest when contextualizing his responsibilities and Berkshire’s scale. Managing $665 billion in combined cash and stock portfolio, plus operating businesses generating tens of billions in annual revenue, arguably justifies significantly higher compensation.

Salary BOT analysis comparing pay to assets under management shows Abel’s compensation represents just 0.0038% of the $665 billion he manages. By comparison, hedge fund managers typically charge 2% of assets under management plus 20% of profits—a fee structure that would generate billions annually if applied to Berkshire’s assets.

The modest pay reflects Berkshire’s culture prioritizing shareholder value over executive enrichment. Buffett established this ethos over six decades, creating expectations that leaders earn primarily through stock appreciation rather than lavish salaries. Abel inherits this culture and must maintain it to preserve shareholder confidence.

However, the 19% increase from $21M to $25M signals the board recognizes CEO role requires higher compensation than vice chairman position. This adjustment balances cultural continuity with market realities around executive talent retention.

FAQ

Who is Greg Abel?

Greg Abel is Berkshire Hathaway’s incoming CEO, succeeding Warren Buffett in January 2026. He joined Berkshire in 1999, became CEO of Berkshire Hathaway Energy in 2008, and was promoted to vice chairman in 2018 overseeing all non-insurance operations.

How much will Greg Abel be paid as Berkshire CEO?

Greg Abel will receive $25 million annual base salary, a 19% increase from his $21 million 2024 compensation. This represents 250x more than Warren Buffett’s symbolic $100,000 salary but remains modest compared to tech CEO packages.

Why was Warren Buffett’s salary only $100,000?

Buffett’s $100,000 salary was symbolic, as his wealth came from owning Berkshire stock worth approximately $150 billion. He kept salary low to demonstrate alignment with shareholders and Berkshire’s culture of frugality.

Is $25 million a lot for a CEO?

By Fortune 500 standards, $25 million is above-median but not extreme. Salary BOT data shows median S&P 500 CEO total compensation around $15-18 million. Considering Berkshire’s $900B+ market cap and $665B in managed assets, Abel’s pay is actually modest.

What will Greg Abel manage as Berkshire CEO?

Abel will oversee $382 billion cash reserves, $283 billion stock portfolio, plus operating businesses including insurance (GEICO), utilities (Berkshire Hathaway Energy), railroads (BNSF), and dozens of manufacturing and service companies.

How does Abel’s pay compare to Elon Musk’s?

Abel’s $25M annual salary is minuscule compared to Elon Musk’s $1 trillion Tesla compensation plan (spanning 10 years). Even annualized, Musk’s package is 4,000x larger than Abel’s, though Musk’s is performance-contingent while Abel’s is guaranteed base salary.