Greg Abel, the newly appointed chief executive officer of Berkshire Hathaway, is poised to receive a substantial salary of $25 million for the year 2026. This figure, confirmed in a recent regulatory filing, positions his compensation among the highest base salaries for leaders of S&P 500 companies in recent years. Abel officially assumed the CEO role on January 1, following the retirement of the legendary investor Warren Buffett.
A New Compensation Era for Berkshire
This significant salary represents a stark departure from the modest pay structure of his predecessor. For decades, Warren Buffett drew an annual salary of just $100,000, with the company covering his personal security costs. In contrast, Abel's proposed $25 million pay package signals a shift as Berkshire transitions from the passion project of a 95-year-old icon to a more conventionally managed corporate giant.
The filing from Tuesday, January 8, 2026, detailed Abel's salary but did not disclose any additional perks, bonuses, or stock awards. This aligns with Berkshire's longstanding board policy, which states the company "never intends to use Berkshire stock in compensating employees." Historically, the firm has avoided stock awards in its executive pay plans.
How Abel's Pay Compares to Peers
An analysis by The Wall Street Journal of proxy data from MyLogIQ reveals that Abel's $25 million salary for 2026 would be the highest base pay received by any sitting S&P 500 CEO in any single year between 2010 and 2024. However, when considering total compensation—which includes stock options, pension gains, and perks—the median pay for S&P 500 CEOs was just over $16 million in 2024.
Most of the top 100 best-paid executives actually received more than $25 million when non-cash awards are factored in. For instance, in 2024, Starbucks reported paying its CEO Brian Niccol $95.8 million, while Tesla shareholders approved a potential $1 trillion stock award for Elon Musk tied to performance milestones.
Bill Stone, Chief Investment Officer at Glenview Trust, a Berkshire shareholder, noted that given Abel is now running one of the ten largest companies in the S&P 500, "one would expect his compensation to be commensurate with that level of CEOs."
Berkshire's Evolution into a 'Normal' Company
The move to a market-competitive CEO salary is one of several signs that the storied Omaha-based conglomerate is operating more like a typical large corporation. Another indicator is the recent departure of key executives for other opportunities. Late last year, Berkshire disclosed that Geico CEO Todd Combs is joining JPMorgan Chase and that longtime finance chief Marc Hamburg will retire in June.
Macrae Sykes, a portfolio manager at Gabelli Funds, which holds Berkshire shares, acknowledged that the ratio of returns to compensation at Berkshire will likely never be as high as it was under Buffett. However, he expressed confidence that "Greg Abel’s CEO tenure will benefit investors of Berkshire Hathaway due to his previous history of capital allocation success and entrepreneurial mindset."
According to a company filing from early March, Abel owns 228 Class A shares and 2,363 Class B shares of Berkshire. In comparison, Buffett owned 206,359 Class A shares and 951 Class B shares at that time, though he has since converted and donated thousands of shares to charity.
Abel's most recently reported pay, for 2024, was just over $21 million, nearly all of it in salary. His 2025 compensation, along with that of other senior executives, will be disclosed in a corporate filing later this year. Neither Buffett nor Abel immediately responded to requests for comment on the new pay structure.
