## Gregg Abel's Compensation at Berkshire Hathaway: $25 Million and a Significant Increase in Authority

The new head of Berkshire Hathaway takes on the role with a salary of $25 million per year – a 19% increase compared to last year's earnings. Greg Abel, who officially assumed the CEO position in January following the resignation of 95-year-old Warren Buffett, receives a compensation package that significantly deviates from the traditionally modest salaries of his predecessor.

### From 21 to 25 million dollars: Berkshire's New Compensation Strategy

Regulatory documents reveal details of Abel's financial package. In 2024, his earnings amounted to $21 million, and this year's base salary of $25 million represents an increase of $4 million. Abel's salary growth reflects his assumption of full operational responsibility for the corporate giant managing assets of enormous value.

### Buffett vs. Abel: A History of Different Approaches to Compensation

Warren Buffett worked for decades earning just $100,000 annually. His modest salary was an anomaly in the corporate world, but his substantial holdings in Berkshire Hathaway – estimated at a net worth of $150 billion – made him one of the wealthiest people on the planet. The shift in compensation approach under Abel's leadership signals a new era in managing the world's largest insurance company.

### Corporate Giant Under New Leadership

Berkshire Hathaway, under Buffett's leadership and its board of directors, manages a diversified portfolio of companies. The company's stock portfolio is valued at $283 billion ( as of September 30 ), and cash reserves amount to $382 billion. These financial resources require strategic management, now entrusted to Abel.

### Compensation Packages: Industry Perspective

Although Abel's salary of $25 million rises to historically high levels for Berkshire, it remains moderate compared to explosive incentive packages in the tech sector. The tech industry has recently highlighted the extremization of compensation systems – Tesla shareholders approved a $1 trillion compensation plan for Elon Musk over a decade, contingent upon meeting specific performance metrics.

### Abel's Career Path at Berkshire

Greg Abel joined Berkshire in 1999 as part of the acquisition of MidAmerican Energy. In 2008, he became CEO of that company, which was later transformed into Berkshire Hathaway Energy. In 2018, he was promoted to vice chairman, overseeing all operations unrelated to insurance. His systematic promotions indicate deliberate preparation for a leadership role in the conglomerate.

Buffett remains chairman of Berkshire Hathaway's board, maintaining influence over the company's strategic direction.