The pay revision comes days after Buffett formally stepped down from day-to-day leadership in late December. Abel, 63, took over as chief executive on January 1, marking the first change at the top of Berkshire in more than 60 years.
Buffett, now 95, has retired from operational responsibilities but will continue as chairman and remain involved with the company.
Abel spent the past eight years as vice chairman in charge of Berkshire’s non-insurance business and has long been seen as Buffett’s chosen successor. His compensation during that period was also determined by Buffett. In 2024, Abel earned a salary of $21 million, followed by $20 million in 2023. In 2022, he received a $16 million salary with a $3 million bonus.
Buffett approved similar pay packages for Ajit Jain, the vice chairman overseeing Berkshire’s insurance operations, between 2022 and 2024. The company is yet to disclose compensation details for Abel and Jain for 2025.
Buffett led Omaha-based Berkshire Hathaway for more than six decades, transforming it from a struggling textile business into a diversified conglomerate now valued at more than $1 trillion. Today, Berkshire owns or controls nearly 200 businesses spanning insurance, railroads, energy, manufacturing and retail.
Its major assets include Geico car insurance, BNSF Railroad, a large utility network, and well-known consumer brands such as See’s Candies and Brooks running shoes.
Despite stepping away from day-to-day management, Buffett remains one of the world’s richest men and continues as Berkshire’s chairman. During his tenure, the company repeatedly noted in regulatory filings that its executive compensation philosophy was “different” from most public companies, reflecting Buffett’s long-standing preference for modest individual pay and strong alignment with shareholders.
Abel, by contrast, has significant personal wealth tied to Berkshire. He owns about $171 million worth of Berkshire stock. In 2022, it sold its 1% stake in Berkshire Hathaway Energy to the parent company for $870 million, further strengthening its financial ties to the conglomerate.
Buffett has said he will continue to come to the office after relinquishing operational control. His retirement from the role of chief executive closes a critical chapter in American corporate history. Under his leadership, Berkshire became the ninth-most valuable company in the United States and the nation’s second-largest property and casualty insurer, with stock, bond and cash holdings approaching $700 billion.
For decades, Berkshire’s annual shareholder meeting in Omaha, built around Buffett’s extended question-and-answer sessions, has attracted thousands of investors and admirers from around the world. With Abel now formally at the helm, investors will be watching closely to see how the next phase of leadership shapes one of America’s most influential companies.
(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)
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