Warren Buffett's successor says he'll spend his entire yearly salary on Berkshire Hathaway stock
· Business Insider
Nati Harnik/AP, FileBrendan McDermid/REUTERS
- Greg Abel says he'll spend his entire salary each year on Berkshire Hathaway shares.
- Abel succeeded Warren Buffett as Berkshire's CEO at the start of this year.
- He told CNBC that his take-home pay of around $15 million will go toward Berkshire stock purchases.
Greg Abel, who succeeded Warren Buffett as Berkshire Hathaway's CEO at the start of this year, has pledged to use his entire paycheck each year to purchase Berkshire shares.
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Abel, whose annual salary for 2026 is $25 million, said during a CNBC interview on Thursday that he would spend his after-tax pay of around $15 million on Berkshire's Class A shares this year.
A regulatory filing confirmed that on Wednesday, he purchased 21 shares for around $730,000 each, for a total outlay of $15.3 million.
Buffett, who has more than 99% of his net worth in Berkshire stock, has long expressed hope that his successor would also put a significant chunk of his personal wealth into the company to align their interests with Berkshire shareholders.
Abel sold his stake in Berkshire Hathaway Energy to Berkshire for $870 million before taxes in 2022.
The transaction sparked calls for him to invest some of the proceeds in Berkshire and get some more "skin in the game," as he only owned around $3 million of the company's stock at the time.
He obliged by spending $68 million on 168 Class A shares in September 2022, then $25 million for another 55 shares in March 2023. The purchases left him with 228 of the Class A shares and around 2,400 of the much cheaper Class B shares.
Abel's purchases on Wednesday increased his number of A shares to 249, worth $182 million as of Thursday morning.
Berkshire's new boss published his first letter to shareholders on Saturday. He paid tribute to Buffett and laid out his plan to continue running the business in the same way going forward.
Abel told CNBC that Buffett was pleased by his commitment. The legendary investor liked that it was unique in corporate America and fit Berkshire's style, Abel said.
Buffett earned a $100,000 salary for more than 40 years as Berkshire CEO, and in recent years returned half that sum to cover the cost of his personal expenses.
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