Abel says he used all his take-home pay to buy Berkshire shares

Abel says he used all his take-home pay to buy Berkshire shares

Greg Abel, the newly appointed CEO of Berkshire Hathaway, has a 2026 cash salary of $25 million, a 19% increase from his 2024 compensation as vice chairman. Unlike traditional CEO compensation structures, Berkshire does not use stock or stock options to pay employees. Instead, Abel has used his cash compensation to purchase Berkshire shares, with his current holdings valued at approximately $171 million. This approach aligns with the company's historical avoidance of equity-based incentives for executives, a practice established under Warren Buffett's leadership.

Buffett, who earned a base salary of $100,000 annually (plus additional payments for personal security services), built his wealth primarily through retained earnings and stock appreciation, rather than cash compensation. In contrast, Abel's salary, while significantly higher than Buffett's, reflects a shift toward conventional executive pay practices for a leader overseeing one of the S&P 500's largest companies.

Financial analysts note that Abel's share purchases demonstrate alignment with shareholder interests, though some, like investor Jonathan Boyar, argue he should acquire even more stock to further "put his money where his mouth is." Berkshire's no-stock-compensation model, combined with Abel's personal investment in the company, underscores a balance between tradition and evolving corporate norms.

As Berkshire transitions under new leadership, observers will monitor whether Abel's compensation strategy—and his ownership stake—reinforce long-term value creation or signal broader shifts in the company's culture.