Buffett's successor is a small participation despite the billion dollar value of Berkshire

(Bloomberg)-Waren Buffett's successor to the successor of Berkshire Hathaway Inc. built up a fortune of billions of dollars, but in contrast to the legendary investor or even his or even his Friends and early supporters Anyone who spectacularly wealthy, relative is associated with a spectacular wealthy during their six decades.

Greg Abel, 62, who will replace Buffett at the end of the year as Chief Executive Officer from Berkshire, holds shares worth around 175 million US dollars. According to Bloomberg, this is a billion -dollar, which rates his assets for the first time, about 18% of his assets of $ 1 billion.

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The majority of his assets result from the proceeds from a share buyback from 2022, in which Berkshire bought his 870 million US dollar to Berkshire Hathaway Energy, a 100 % subsidiary that was abel from 2008 to 2018.

His Berkshire stocks are about a thousandth of the value of Buffett 160-billion dollar participation. They are also significantly less than that of other non-founded CEOs of trillion dollar companies, including Tim Cook, whose $ 651 million Apple Inc.-Share accounts for around 38% of its net assets, or Sundar Pichai, whose $ 338 million in Inc. 33% of his assets.

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Abel did not answer a request for comments.

Long-standing observers of Berkshire Under Buffett's Stewardship ask whether Abel will make changes when taking over, and range from the expansion of the company's famous C-Suite to the revision of what companies Berkshire focuses on. Abel's relatively small participation could also ask whether he will change the wage structure of the upper management of Berkshire or the company's two-class share structure.

Since Abel 2018 was promoted to a deputy chairman in Berkshire in Berkshire, he has earned around 20 million US dollars a year in the form of salary and bonus. Like the rest of Berkshires Upper Management, he has never been awarded an equity as part of his remuneration package during this time. He bought his Berkshire shares in 2022 and 2023 with his own money after triggering his energy shipping.

“Ask questions”

For years, the 94 -year -old Buffett has decided the annual compensation of other managers and has taken a nominal content of $ 100,000. He also has more than a third of the company's shares in class A shares that have 10,000 times the voice powers of general B shares.

Read more: What Warren Buffett's exit as CEO for Berkshire Hathaway means

“When Buffett headed it, only a few questioned the structure of the dual class and only a few asked his salary in question-so invested in the thing,” said Charles Elson, founding director of the Delaware University of the University of Delaware. “As soon as you have brought a new person with you, it is not the founder that people start asking questions.”

Of course, Abel's Berkshire share is not unusual when it comes to the entire range of listed companies. A 2018 study At the Harvard Law School Forum for Corporate Governance, more than half of the CEO's CEOs from Russell 3000 Index held less than 1% of their company's outstanding shares, with only 3.6% more than 25%. (Abel holds 0.0002% of the outstanding class A and Berkshire class B.)

Abel could also receive a pass from the shareholders and the board of Berkshire, who could hesitate to upgrade a salary structure that has consistently achieved returns for decades.

“Why should you, just because Warren leave, try to find a way to push yourself into a salary structure that is probably not so well worked for other companies?” said Dan Walter, a remuneration consultant of the advisory company Alliant Humankapital. “When their shareholders achieve big returns, they almost never take care of how much the people who generate these returns are paid.”