Berkshire Hathaway is paying its new CEO, Greg Abel, $25 million each year, a big bump from Warren Buffett's pay.
Buffett, who retired last year, famously took an annual salary of $100,000 with no bonus or stock awards for over 40 years. Bloomberg estimates his net worth at $150 billion, the tenth-richest person in the world.
Abel, who was previously Buffett's deputy, was paid $21 million last year. CEOs of S&P 500 companies were paid an average of $18.9 million in 2024.
I believe he will maintain the company's investment philosophy even though he is known for having a more hands-on leadership style than Buffett.
Berkshire Hathaway's new CEO has a much higher salary than Warren Buffett did
byu/LavishlyRitzyy instocks
Posted by LavishlyRitzyy
5 Comments
The alternative title is he has an average SP500 CEO salary, while Buffett had so much money in stocks that he didn’t want/need one in cash because he could always get a loan from the banks
Do you want a good CEO, or not?
They tend to cost a lot of money. While 25 million a year might sound like a lot, but if he is just 1% better at his job than the second guy who is willing to do it for 100k it would still make financial sense to pay the 25 million.
How do I become CEO ? I know excel
I think the problem is that if you want someone good you need to pay high salaries. Anyone good enough for the role will be able to make their own money elsewhere (CEO somewhere else, running a fund, etc). If you don’t pay top dollar you’ll be stuck with the guys who couldn’t make it themselves which is a danger to the company.
25 million for someone who is responsible for over a trillion in assets doesn’t seem that expensive.