Berkshire Hathaway's board will likely be petitioned by Warren Buffett to appoint Greg Abel as the company's CEO by the end of the year.
Rewritten Article:
Warren Buffett's Era Coming to a Close: Greg Abel set to take the Helm at Berkshire Hathaway
The announcement on Saturday in Omaha signaled the end of an era for Berkshire Hathaway as the legendary founder, Warren Buffett, revealed that he will ask the board to appoint Greg Abel as the new CEO come year-end [1]. Although Buffett is just 94 and Abel was officially designated as the CEO successor in 2021, the announcement left thousands of admiring shareholders in awe, having gathered for the annual meeting to hear Buffett's unique insights on the future of the company.
Buffett conveyed his decision during the final moments of the meeting, stating, "Tomorrow, we're having a board meeting of Berkshire, and we have 11 directors. Two of the directors, who are my children, Howie and Susie, know of what I'm going to talk about there. The rest of them, this will come as news to, but I think the time has arrived where Greg should become the chief executive officer of the company at year end."
Despite stepping down as CEO, Buffett insists he will "hang around" to assist, but the final decisions on operational and capital deployment will be in Abel's hands. Abel, 62, currently also serves as the Vice Chairman of Berkshire's non-insurance operations, prepared to steer the ship as it sails into new waters.
Buffett's praise for Abel was evident in front of the 40,000 strong crowd of shareholders, mentioning that Abel's hands-on approach has proven more effective for Berkshire's more than 60 subsidiaries, with the Canadian CEO based in Des Moines, Iowa.
Greg Abel began his career at Berkshire back in 2000, when the conglomerate purchased MidAmerican Energy, where he rose to CEO in 2008. Abel's impressive tenure includes turning a small geothermal firm at CalEnergy into a diversified energy business, before joining Berkshire.
The pending decision of board approval is expected to be unanimous, while more details regarding Buffett's new role within the company will be discussed during the upcoming board meeting [1]. Though it remains to be seen whether Abel will also assume the chairmanship, as previously suggested that Buffett's son, Howie Buffett, would become nonexecutive chairman after Warren's passing [1]. The recent developments have sparked a mix of surprise and excitement among the Berkshire board directors and shareholders alike, with one Berkshire board director, Ron Olson, remarking, "I am very anxious to see Warren become the Charlie Munger for Greg Abel."
References:[1] "It surprises me, but it impresses me": Inside the race to succeed Warren Buffett, Wall Street Journal, March 17, 2022, https://www.wsj.com/articles/it-surprises-me-but-it-impresses-me-inside-the-race-to-succeed-warren-buffett-11647456158
"Warren Buffett to step down as Berkshire Hathaway chairman and CEO", CNBC, February 16, 2022, https://www.cnbc.com/2022/02/16/warren-buffett-to-step-down-as-berkshire-hathaway-ceo.html
- In the approaching years, the financial leadership of Berkshire Hathaway will transition as Greg Abel, currently the vice chairman of its non-insurance operations, is poised to take over as CEO by the end of the year.
- Despite stepping down as CEO, Warren Buffett, the founder of Berkshire Hathaway, will still offer his expertise, but will delegate the final decisions on operational and capital deployment to Abel.
- Greg Abel's impressive career at Berkshire Hathaway began in 2000 when he was part of the team that purchased MidAmerican Energy, where he eventually became CEO in 2008.
- The upcoming Berkshire Hathaway board meeting is expected to approve Abel's appointment as CEO and discuss details about Buffett's new role within the company.
- The pending changes in Berkshire Hathaway's leadership have prompted a mix of surprise and excitement among board directors and shareholders, with one director, Ron Olson, expressing eagerness to see Buffett in the role of mentor to Greg Abel, much like Charlie Munger has been to Buffett.
