Berkshire Hathaway's Power Shift: Greg Abel Set to Succeed Warren Buffett as CEO by 2026

Berkshire Hathaway has announced a significant corporate governance change, separating the roles of Chairman and CEO. On October 3, the company revealed through an 8-K filing submitted to the U.S. Securities and Exchange Commission that its board had voted on September 30 to amend its bylaws, effective immediately, to separate these two crucial roles.

This strategic move is widely viewed as preparing the ground for the company's current Vice Chairman, Greg Abel, to take over as CEO from Warren Buffett, who has held both positions for decades. Abel is set to assume the CEO role at the beginning of 2026, while Buffett will remain Chairman. The board had already announced on May 5 the decision, made a day earlier, to appoint Abel as CEO starting January 1, 2026. In anticipation of these changes, Berkshire's board added Section 3.5 to its bylaws under "Board of Directors" and made corresponding amendments to the section on "Officers and Agents."

Buffett, who acquired Berkshire in 1965 at $14 per share, expressed his confidence in Abel during the 2025 annual shareholder meeting. He recommended Abel's appointment, stating the timing was right for Abel to step into the CEO position. Post-transition, Buffett assured stakeholders that he would still contribute to Berkshire, but emphasized that ultimate decision-making would rest with Abel.

Buffett also mentioned his plans to retain his Berkshire shares, gradually donating them rather than selling. He reasoned that holding onto these shares is a prudent decision, given he believes the company's prospects under Abel's leadership exceed those during his tenure. Abel, currently overseeing non-insurance operations, emphasized the importance of maintaining Berkshire's core values and reputation during asset allocation processes.

Abel highlighted Berkshire's substantial cash reserves as a strategic asset that enables the company to remain independent from banks or other entities for success. He elaborated on Berkshire's investment philosophy, which demands a thorough understanding of a company's vision before any financial commitment. This approach has been foundational to Berkshire's operations for over six decades and is expected to continue.

Born in Edmonton, Canada, in 1962, Abel holds a Bachelor of Commerce degree from the University of Alberta and has worked at PricewaterhouseCoopers before joining Berkshire. His career is notably marked by achievements in the utilities sector, including steering Berkshire Hathaway Energy into becoming a major U.S. power producer, and he now leads Berkshire's daily non-insurance operations.