By Jonathan Stempel
March 13 (Reuters) - Berkshire Hathaway said on Friday it awarded Chief Executive Greg Abel $22 million in compensation last year as he prepared to take over from Warren Buffett, and recently spent more than $200 million repurchasing its own stock after going nearly two years without buybacks.
Abel's pay and the buybacks were disclosed in a proxy statement for Berkshire's May 2 annual meeting in Omaha, Nebraska.
The 63-year-old Abel succeeded Buffett as chief executive on January
1 following eight years as a vice chairman. Berkshire's other vice chairman, Ajit Jain, 74, was also awarded $22 million. Abel's salary is $25 million in 2026.
Buffett, 95, led Berkshire for six decades and remains chairman.
He received compensation of $389,488 in 2025, comprising his usual $100,000 salary plus personal and home security. Buffett spends significant time working at home but still goes daily to the office about two miles away, Berkshire has said.
INTRINSIC VALUE IS A FACTOR IN BUYBACKS
Berkshire said the number of shares outstanding fell by the equivalent of 309 Class A shares in the quarter ending March 4.
Abel told CNBC last week that buybacks resumed that day, and had been Berkshire's first since May 2024.
Some analysts and investors believe Berkshire has been too cautious investing capital. Its more than $373 billion year-end stake in cash and equivalents comprises more than one-third of Berkshire's approximately $1.06 trillion market value.
Berkshire's portfolio includes dozens of businesses including Geico car insurance, the BNSF railroad, and many industrial, manufacturing and retail operations, as well as nearly $300 billion of stocks at year end.
Abel said Berkshire conducts buybacks when the intrinsic value of its shares exceeds the market price, and that "with the transition of leadership" it was important to announce that buybacks had resumed.
Berkshire will likely disclose on May 2 if it repurchased more stock in the first quarter.
BERKSHIRE BACKS SAY-ON-PAY, OPPOSES PROPOSAL ON WORKFORCE OVERSIGHT
In its proxy statement, Berkshire's board of directors also recommended that shareholders approve proposals giving them an advisory "say-on-pay" for how Berkshire compensates top executives, and similar votes every three years.
The board also unanimously urged the rejection of a shareholder proposal that it produce a report on its oversight of workforce and human-capital management across its operating businesses.
Citing Berkshire's culture and decentralized structure, the board said Berkshire operating units should manage their own affairs, making the report unnecessary.
Buffett owns 13.7% of Berkshire's stock but controls 30.2% of its voting power. Shareholders face an uphill fight winning majority support for proposals he opposes.
(Reporting by Jonathan Stempel in New York; Editing by Alistair Bell)
