Berkshire Hathaway’s leadership transition has introduced a significant change in executive compensation. As Greg Abel officially took over as CEO on January 1, 2026, he was assigned an annual salary of $25 million, a notable increase from the long-standing pay of Warren Buffett, who earned $100,000 annually for his role as CEO.
Buffett’s modest salary had long been seen as a symbol of his leadership style, focusing on long-term value for shareholders rather than high executive compensation. Abel’s compensation, on the other hand, reflects more common practices in large U.S. corporations, where executive pay often reaches into the tens of millions.
The change has prompted discussions about the future of Berkshire Hathaway and how the company will evolve under its new leadership. While Buffett’s salary was unique and symbolic, Abel’s pay package is more in line with contemporary corporate norms.
Details of Abel’s Compensation Package
Abel’s salary for 2026 is a significant increase from his $21 million compensation in 2025, prior to his promotion to CEO. The rise in his pay reflects his new role overseeing Berkshire Hathaway’s diverse portfolio of businesses, which span industries from insurance to energy. The structure of his compensation package includes additional benefits, with the majority of his pay in the form of salary.
This increase aligns Abel with the pay norms of other Fortune 500 CEOs. Managing a conglomerate of Berkshire’s scale, which includes overseeing a wide range of subsidiaries, requires substantial responsibilities. Abel’s salary reflects the scope of these duties, with shareholders expecting strong leadership to maintain Berkshire’s growth and profitability.
Buffett, who served as CEO for over five decades, made a point to maintain his modest salary as a reflection of his personal philosophy. While Buffett’s compensation was symbolic of his focus on long-term value, Abel’s pay is seen as a standard package for a CEO of a large, diversified corporation.
Mixed Reactions from Shareholders
Shareholder reactions to Abel’s pay have been varied. Some shareholders view the salary increase as a necessary step to attract and retain top talent, especially as the market for executives becomes increasingly competitive. However, others have raised concerns about the departure from Buffett’s long-established pay structure, questioning whether such an increase is in line with Berkshire’s traditional values of simplicity and frugality.
While the $25 million salary is significantly higher than Buffett’s, it places Abel within the typical range for top executives in major corporations. However, the change marks a shift in the company’s ethos, moving away from the image of modesty that Buffett cultivated over the years. For many, the question is not just about the numbers but what the change says about the direction of the company.
Comparison to Broader Corporate Trends
The rise in executive compensation has been a growing trend in corporate America over the past several decades. CEO pay in major U.S. companies often exceeds $20 million annually, including salaries, bonuses, and stock options. Abel’s salary falls squarely within this range, placing him in line with the compensation of other CEOs at companies of similar size and complexity.
Buffett’s $100,000 salary, in contrast, was widely seen as a departure from the norm, especially given the size and profitability of Berkshire Hathaway. His compensation was more symbolic, reflecting his personal approach to leadership. Abel’s salary, however, is not extraordinary by industry standards and reflects the realities of modern corporate governance.
The Changing Leadership Style at Berkshire Hathaway
The transition from Buffett to Abel signals a shift not only in leadership but also in the company’s approach to executive compensation. While Buffett’s pay was emblematic of his philosophy and leadership style, Abel’s pay package is more reflective of broader corporate trends. This change has prompted discussions about the future direction of the company and what it will look like under Abel’s leadership.
Abel, who has been with Berkshire Hathaway for many years, is now tasked with continuing the company’s legacy while navigating the challenges that come with being the CEO of one of the largest and most complex conglomerates in the world. His salary increase, while a notable departure from Buffett’s approach, may be necessary for Berkshire Hathaway to maintain its competitive edge in attracting and retaining top leadership talent.
Looking to the Future of Berkshire Hathaway
As Abel begins his tenure as CEO, the focus will remain on Berkshire Hathaway’s performance. Abel’s leadership will be judged not only on his salary but on how he manages the company’s vast portfolio of businesses and continues to create value for shareholders. While the compensation package is a significant shift, it is the company’s long-term success under his leadership that will ultimately define his legacy.
Buffett’s legacy continues to loom large at Berkshire Hathaway, and Abel’s challenge will be to honor that legacy while guiding the company into a new era. The contrast in their pay packages marks the beginning of a new phase for Berkshire Hathaway, but the company’s focus will remain on maintaining growth, stability, and long-term value creation.
