Core Viewpoint - The article discusses the compensation of Berkshire Hathaway's Vice Chairman Greg Abel, highlighting the significant difference between his pay and that of the company's founder, Warren Buffett, while also addressing the implications of this shift in compensation structure for the company and its future direction [2][4]. Compensation Comparison - Greg Abel's total compensation, including stocks and noncash awards, exceeds the median of over $16 million for S&P 500 CEOs, with many top executives earning more than $25 million [2]. - Warren Buffett's annual salary is notably low at $100,000, with additional personal security costs, and he has historically returned half of his salary to cover personal expenses [2]. Share Ownership and Investment - Abel currently owns Berkshire shares valued at approximately $171 million, which is considered a significant amount by investors [3]. - Investor Jonathan Boyar suggests that Abel should invest more of his personal wealth in Berkshire stock to align his interests with those of shareholders [3]. Future of Berkshire Hathaway - The article suggests that Abel's increasing salary may indicate a trend towards "normalization" of executive compensation at Berkshire, potentially making the company more similar to its corporate peers [4]. - Professor Randall Peterson notes that the transition may take a long time and could be influenced by Buffett's eventual departure [4]. Performance Metrics - As of early 2026, Berkshire Hathaway's stock performance has lagged behind the S&P 500 by approximately one percentage point, with the S&P outperforming Berkshire's A shares by 7.0 percentage points in the previous year [7].
Abel's $25 million Berkshire paycheck is in the same league as other S&P 500 CEOs