Greg Abel’s $25 million total compensation package as CEO of Berkshire Hathaway places him among the highest-paid executives in the S&P 500, despite the company's long-standing tradition of modest executive pay. The figure marks a significant departure from Warren Buffett’s historic $1 annual salary.
- Greg Abel received $25 million in total compensation as CEO of Berkshire Hathaway in 2025.
- This includes $15 million in base salary, $5 million in performance incentives, and $5 million in stock awards.
- Abel’s package ranks in the top 10% of S&P 500 CEO pay, surpassing the average of $12.3 million.
- His compensation reflects a departure from Warren Buffett’s historic $1 annual salary.
- The move aligns Berkshire with broader market trends in executive pay for major public companies.
- The decision may influence pay practices at other traditional firms undergoing leadership transitions.
Greg Abel’s $25 million compensation package for 2025 represents a pivotal shift in Berkshire Hathaway’s leadership pay philosophy. As the newly appointed CEO following Warren Buffett’s retirement, Abel’s total compensation includes $15 million in base salary, $5 million in performance-based incentives, and $5 million in stock awards. This package reflects a strategic alignment with market norms for top-tier corporate leadership, particularly in large-cap industrial and financial conglomerates. In the broader context of S&P 500 CEO pay, Abel’s compensation places him in the top 10% of earners. According to publicly available proxy statements, the average CEO in the S&P 500 received approximately $12.3 million in total compensation during 2024, with the highest-paid executives exceeding $50 million. Abel’s $25 million falls just short of that peak but significantly exceeds the median, underscoring a growing trend toward performance-linked pay even within traditionally conservative firms. Berkshire Hathaway’s move signals a new era of executive compensation as it transitions from Buffett’s stewardship model to a more modern, market-driven approach. While Buffett famously accepted $1 annually for decades, the company’s board opted for a package designed to attract and retain top-tier leadership amid increasing competitive pressures in the financial and industrial sectors. The adjustment affects investor expectations, governance standards, and comparisons with peers such as Apple, Microsoft, and JPMorgan Chase, where CEO pay has long surpassed $20 million. Analysts note that Abel’s compensation is likely to influence pay structures at other legacy firms undergoing leadership transitions.