90-Year-Old Buffett Names Vice Chairman Abel as Successor

Greg Abel, Berkshire Hathaway Non-Insurance Head

▲Greg Abel, chosen as Warren Buffett's successor [Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Warren Buffett, chairman of Berkshire Hathaway, one of the largest investment companies in the United States, has named Vice Chairman Greg Abel as his successor. At 90 years old this year, Buffett has long been the subject of public interest regarding his succession plan, and he has now officially announced his successor.

According to CNBC on the 3rd (local time), Buffett stated in an interview, "If something happens to me tonight, the directors have agreed that Abel will take over my duties tomorrow morning," effectively confirming the succession of Vice Chairman Abel, who oversees the non-insurance sector.

On the same day, Vice Chairman Charlie Munger also hinted at Abel’s succession during the annual shareholders' meeting held on the 1st, responding to a question about the company being too complex to manage by saying, "Abel will preserve Berkshire Hathaway’s culture," and "The company’s decentralized system will outlast both myself and Buffett."

Abel, who became vice chairman in 2018, currently oversees the non-insurance asset management division responsible for employing over 250,000 people and generating more than $150 billion in revenue. He leads the group’s railroad, utilities (water, electricity, gas), manufacturing, retail, and automobile sales businesses.

Born in 1962 in Edmonton, Alberta, Canada, Abel spent an ordinary youth enjoying hockey in a working-class residential area. He majored in commerce at the University of Alberta and, after graduation, worked as an accountant at PricewaterhouseCoopers (PwC) before moving to Cal Energy. This company, later renamed MidAmerican, was acquired by Berkshire Hathaway in 1999, marking Abel’s first connection with Buffett.

Now 59 years old, Abel has been competing for the successor position with Vice Chairman Ajit Jain, 69, who oversees the insurance asset management division. Buffett mentioned that if Greg becomes chairman, Jain would take over Greg’s current position.

Buffett indicated that "if something happens to Abel, Jain will be next," showing that Jain is considered the second-in-line. He also praised both, saying, "They are both wonderful people."

The succession plan of Buffett, known as the "Oracle of Omaha," has been a significant topic of discussion for decades. In 2018, Buffett officially named Abel as vice chairman of the non-insurance division and Jain as vice chairman of the insurance division, designating them as the next CEO candidates.

There is also interest in how the relationship between Abel and his competitor Jain will develop if Abel takes over as CEO. At the shareholders' meeting on the 1st, they described each other as respectful and communicative business partners.

The Wall Street Journal (WSJ) praised Abel as a "flawless dealmaker" upon his nomination as Buffett’s successor.

According to documents submitted by Berkshire Hathaway to the U.S. Securities and Exchange Commission (SEC), Abel received a base salary of $16 million (approximately 1.793 billion KRW) in both 2019 and 2020, with bonuses reaching $3 million (approximately 336 million KRW) annually.

Meanwhile, it is expected that Berkshire Hathaway’s chairman position will be succeeded by Buffett’s son, Howard Buffett.

This content was produced with the assistance of AI translation services.