Greg Abel
About Greg Abel
Gregory E. Abel (age 62) is Berkshire Hathaway’s Vice Chairman – Non‑Insurance Operations and a director since 2018; he previously served as CEO of Berkshire Hathaway Energy (BHE) from 2008–2018 and remains BHE’s Chairman (since 2011) . Berkshire’s compensation framework does not tie NEO pay to company profitability or stock price and does not use equity; Mr. Abel’s compensation is set by Warren E. Buffett based on subjective assessments of performance and responsibilities . Company performance context: Berkshire’s net operating earnings grew from $21.9B (2020) to $47.4B (2024), up 164% over five years, and TSR over 2019–2024 was 100.5% (vs. 97.0% for the S&P 500) .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Berkshire Hathaway | Vice Chairman – Non-Insurance Operations; Director | 2018–present | Oversees non‑insurance subsidiaries (e.g., BNSF, BHE, manufacturing, services, retail) under Berkshire’s decentralized model . |
| Berkshire Hathaway Energy (BHE) | Chairman | 2011–present | Strategic oversight of BHE’s utility, pipelines, and renewables portfolio . |
| Berkshire Hathaway Energy (BHE) | Chief Executive Officer | 2008–2018 | Led growth and capital deployment across regulated energy assets . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| The Kraft Heinz Company | Director | –May 2024 | Former public company directorship . |
| AEGIS Insurance Services, Inc. | Director | 2016–2023 | Industry mutual serving the energy sector . |
| Horatio Alger Association | Director; Chairman Emeritus | Current | Non‑profit leadership role . |
Fixed Compensation
| Metric (USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary | $16,000,000 | $20,000,000 | $21,000,000 |
| Bonus | $3,000,000 (discretionary) | $0 | $0 |
| All Other Compensation | $15,250 | $16,500 | $17,250 |
| Total Compensation | $19,015,250 | $20,016,500 | $21,017,250 |
Notes:
- Compensation is determined by Mr. Buffett; Berkshire does not use profitability or stock price in setting executive pay and does not grant Berkshire stock as compensation .
Performance Compensation
Berkshire does not use formulaic performance metrics for NEO pay and does not grant equity; bonuses, when paid, are discretionary. The committee policy states neither company profitability nor stock market value are considered in executive compensation .
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Company profitability/TSR | Not used | N/A | N/A | N/A | N/A |
| Objective financial goals | Not used | N/A | N/A | N/A | N/A |
| Discretionary bonus | Not predetermined | N/A | $3,000,000 in 2022 | Paid at discretion | N/A |
| Equity awards (RSUs/PSUs/options) | Not used | N/A | N/A | N/A | N/A |
Equity Ownership & Alignment
| Holding | Amount | Notes |
|---|---|---|
| Class A shares beneficially owned | 228 | Includes shares held by a trust where Mr. Abel is a trustee; he disclaims beneficial interest in those trust shares . |
| Class B shares beneficially owned | 2,363 | Includes 2,289 Class B in trust (disclaimed) and 74 Class B as custodian for family (disclaimed) . |
| Ownership as % of shares outstanding | <0.1% | Reported as “*” (less than 0.1%) in proxy table . |
| Vested vs. unvested shares | Not disclosed | Berkshire does not grant equity to executives . |
| Options (exercisable/non‑exercisable) | None disclosed | No option awards reported . |
| Shares pledged as collateral | Not disclosed | No pledging disclosure for Mr. Abel; Berkshire references an Insider Trading Policy on its website . |
| Stock ownership guidelines | Not disclosed | No guideline disclosure for executives in proxy . |
Employment Terms
| Term | Detail |
|---|---|
| Employment agreement/contract | Not disclosed in the latest proxy; no 8‑K 5.02 filing indicating new arrangements located in reviewed period . |
| Severance provisions | Not disclosed in the latest proxy . |
| Change‑of‑control (single/double trigger) | Not disclosed in the latest proxy . |
| Clawback policy | Not disclosed in the latest proxy (no specific clawback terms found) . |
| Non‑compete/non‑solicit | Not disclosed in the latest proxy . |
| Deferred compensation/Pension/SERP | Not disclosed for Mr. Abel in the latest proxy . |
| Perquisites | “All other compensation” reflects contributions to subsidiary defined contribution plans; no perquisite detail for Mr. Abel beyond noted amounts . |
Performance & Track Record (Context for Mr. Abel’s remit)
Berkshire segment operating earnings (after‑tax) show improved results in 2024, notably at BHE; BNSF was modestly lower.
| Segment Operating Earnings ($MM, after‑tax) | 2023 | 2024 |
|---|---|---|
| Berkshire Hathaway Energy (BHE) | 2,331 | 3,730 |
| BNSF | 5,087 | 5,031 |
| Other controlled businesses | 13,362 | 13,072 |
| Non‑controlled businesses | 1,750 | 1,519 |
Five‑year company context: Net operating earnings rose from $21.9B (2020) to $47.4B (2024), up 164%; Berkshire’s five‑year TSR was 100.5% (company) vs. 97.02% for the S&P 500 index .
Board Governance (Director Service, Independence, Committees)
- Director since 2018; executive director (not independent). Independent directors identified are Burke, Chenault, Davis, Decker, Guyman, Murphy Jr., Weitz, and Witmer .
- Committee roles: Audit Committee (Decker, Davis, Weitz, Witmer); Governance, Compensation & Nominating Committee (Burke, Chenault, Guyman, Murphy Jr.). Mr. Abel is not a member of these committees .
- Attendance: “Each then current director attended all meetings of the Board and of the Committees of the Board on which he or she served” in 2024 .
- Lead Independent Director: Susan L. Decker. The lead independent director does not represent the Board in shareholder communications; Berkshire emphasizes the annual Q&A session with the Chairman and the two Vice Chairmen (Mr. Buffett, Mr. Abel, Mr. Jain) .
- Dual‑role implications: Berkshire supports combined CEO/Chairman when there is an active controlling shareholder (Mr. Buffett). Succession planning is a standing Board topic; if Mr. Buffett can no longer serve, a Buffett family member may serve as non‑executive Chair, subject to the Board at that time .
Director pay context:
- Employees or spouses of employees (including Mr. Abel) do not receive director meeting fees; non‑employee director fees are modest ($900 in‑person; $300 telephonic; Audit Committee $1,000 quarterly) .
Compensation Structure Analysis (Signals)
- Shift and mix: Mr. Abel’s compensation is almost entirely fixed salary ($16.0M in 2022; $20.0M in 2023; $21.0M in 2024) with a one‑time discretionary bonus in 2022; no equity grants or options, consistent with Berkshire’s policy not to use Berkshire stock for employee pay .
- Pay-for-performance alignment: No formulaic financial metrics, no TSR linkage, and no equity vesting schedules; compensation determined subjectively by Mr. Buffett based on perceived performance and responsibilities .
- Peer benchmarking: Berkshire does not disclose a compensation peer group; it references the S&P P&C Index only for performance graph/peer TSR comparisons, not for setting pay .
- Clawbacks/COC/severance: Not disclosed in the proxy (no clawback terms, severance, or change‑of‑control provisions found) .
Say‑on‑Pay & Shareholder Feedback
- The 2025 proxy meeting agenda included director elections and several shareholder proposals; no say‑on‑pay resolution was included in the agenda items presented in the proxy reviewed .
Risk Indicators & Red Flags
- Hedging/pledging: Berkshire references an Insider Trading Policy on its website but the proxy does not disclose any pledging or hedging by Mr. Abel; no such activity is reported in his ownership footnotes .
- Related party transactions: None disclosed involving Mr. Abel in the proxy; a related party legal services disclosure pertains to another director’s firm (Munger, Tolles & Olson) .
- Legal/investigations: No proceedings disclosed with respect to Mr. Abel in the proxy .
Equity Ownership & Alignment (Detailed Table)
| Metric | Value |
|---|---|
| Total beneficial ownership | 228 Class A; 2,363 Class B |
| Footnotes | Includes trust‑held Class A and Class B where he disclaims beneficial interest; also 74 Class B as custodian (disclaimed) . |
| Voting/economic % | Less than 0.1% of either class; aggregate voting/economic interest reflected as de minimis “*” in table . |
| Ownership guideline compliance | Not disclosed . |
Employment Terms (Detailed)
| Topic | Disclosure status |
|---|---|
| Employment agreement, term, renewals | Not disclosed in DEF 14A . |
| Severance, change‑of‑control economics | Not disclosed in DEF 14A . |
| Clawback, tax gross‑ups | Not disclosed in DEF 14A . |
| Non‑compete/non‑solicit/garden leave | Not disclosed in DEF 14A . |
| Post‑termination consulting | Not disclosed in DEF 14A . |
Investment Implications
- Alignment: Absence of equity‑based compensation eliminates forced selling/vesting overhang and reduces insider selling pressure; however, it also limits direct equity alignment at the executive level—ownership is modest (<0.1%) .
- Retention and incentives: High, fixed cash pay with discretionary bonuses (no formulaic hurdles) suggests retention is driven by role scope and Berkshire’s culture rather than vesting schedules; lack of disclosed severance/COC provisions reduces “golden parachute” risk but leaves limited transparency on downside protection .
- Execution lens: As steward of non‑insurance operations, Mr. Abel’s area showed strong 2024 improvement at BHE (+$1.4B YoY operating earnings), while BNSF was modestly lower; investors should monitor regulatory outcomes, capital deployment at BHE, and rail volume/pricing trends for BNSF as key drivers under his remit .
- Governance: As an executive director (not independent) with no committee roles, potential future dual‑role considerations (if CEO succession occurs) would be mitigated by Berkshire’s lead independent director structure and stated succession framework; however, Berkshire’s limited shareholder engagement outside the annual Q&A remains a governance idiosyncrasy .