How much will Greg Abel earn as Berkshire Hathaway's CEO?
What's the story
Berkshire Hathaway has announced a significant salary increase for its new CEO, Greg Abel. The company revealed in a recent filing that Abel, who took over from Warren Buffett on January 1, will receive an annual cash salary of $25 million. This is a whopping 19% increase from his previous pay and far more than the $100,000 his predecessor earned during his tenure.
Progression
Abel's career trajectory and compensation history
Abel, who spent eight years as vice chairman overseeing the firm's non-insurance businesses, became CEO on January 1. His new salary is a 19% jump from his $21 million salary in 2024. In 2023, he was paid a $20 million salary and in 2022, he received a $16 million pay plus a $3 million bonus. Buffett had set these compensations during this period.
Salary comparison
Berkshire vice chairman Ajit Jain's compensation
Berkshire's Vice Chairman, Ajit Jain, who oversees the company's insurance businesses, was paid the same amount as Abel from 2022 to 2024. However, their compensations for 2025 have not been disclosed yet. Despite Abel's high salary as CEO, it is still nothing compared to the incentive structures for tech executives in recent years. For example, Tesla's shareholders approved a $1 trillion package for Elon Musk.
Career highlights
A look at Abel's journey with Berkshire Hathaway
Abel joined Berkshire in 1999 through its acquisition of MidAmerican Energy Company. He became CEO of what is now known as Berkshire Hathaway Energy in 2008, and was promoted to vice chairman in 2018. Abel owns about $171 million worth of Berkshire stock, and sold his 1% stake in the Berkshire Hathaway Energy business to Berkshire for $870 million in 2022.