Tuesday, September 21, 2021

Greg Abel Net Worth: How Wealthy Is Berkshire Hathaway’s Next Buffet?

Warren Buffet lived a rather frugal life, the one he is famous for. What about the net worth and lifestyle of Greg Abel, the next CEO of Berkshire Hathaway?

Highlights

  • How much is Greg Abel worth?
  • What are the major income sources of Berkshire Hathaway’s next CEO?
  • Shedding a light on the early life of Greg Abel.
  • Lifestyle choices of the man trusted by the Oracle of Omaha.

It has been a long voyage for Greg Abel, 58, from modest beginnings to the upcoming CEO of the world’s most famous hedge fund, Berkshire Hathaway. Despite holding very little Berkshire Hathaway’s publicly traded stock, Abel is the man trusted by Warren Buffet to lead the vision after he steps down.

Greg Abel’s net worth is estimated to be $484 million because of a position in the company’s privately held energy division.

The company’s youngest board members, Abel’s holdings in the public firm are disproportionately modest. But he has long been considered the successor of Warren Buffet whenever he steps down or passes away.

Abel has been on the Berkshire Hathaway board of directors since 2000. He was appointed Director and Vice Chairman of Non-Insurance Operations in 2018. BNSF railroad, retail enterprises including Fruit of the Loom and Brooks footwear, and Berkshire Hathaway Energy are among the industries he oversees.

Earlier on May 1, 2021, Warren Buffet announced at the Berkshire Hathaway annual meeting, “the directors are in agreement that if something were to happen to me tonight, it would be Greg who’d take over tomorrow morning.”

What much is Greg Abel’s net worth?

As of May 2021, the net worth of Greg Abel was recorded at $480 million.

Greg Abel Salary and Compensation

For the last three consecutive years, Greg Abel’s base salary stood at $16 million. This was topped by the $3 million that he received in bonus in the years 2020 and 2019 along with $2 million in bonuses in 2018.

Thanks to a huge incentive payment, Greg Abel’s net worth registered a compensation jump by 48% to nearly $41 million last year.

He also owns 5 Berkshire Hathaway Class A shares for over $400,000 each and 2363 class B shares worth $280 each in the trust. The overall shareholding is estimated to be worth $2.8 million.

Given his age, broad responsibilities supervising all non-insurance operations, and more than two decades of association with Berkshire, Abel has long been seen as the most likely contender to succeed Buffett.

During Berkshire Hathaway’s annual meet, the vice-chairman gave indications that “Greg will keep the culture.”

The Early life of Greg Abel

Abel belongs from Alberta, Canada, and his family led a schematic lifestyle away from materialistic inclination. He was born in 1962 in Edmonton. He started gaining his fondness for hockey from early childhood and went to play till they were called for dinner in summer and wintertime.  Greg felt secure and lively in a traditional neighborhood. 

His parents and grandparents guided him towards life values and motivated him always to give his best efforts, be it sports or professional life. Abel gained good regard for money as a child growing up in a working-class Edmonton neighborhood. He was already hustling when he was a teenager, taking any odd work he could to supplement his income. His main responsibilities included delivering advertising fliers and replenishing fire extinguishers for his father’s company, where he worked as a salesman.

Not much has changed, Abel still lives a simple life

Abel likes to stay away from the spotlight even now when he is filthy rich. His approach is simple, working towards goals and dreams and achieving them with best efforts. In his personal life, he’s a lot like that. He may own a portion of a private plane through Berkshire Hathaway, which owns NetJets, but that’s about as near as he comes to the lifestyles of the affluent and famous.

Despite his image as a philanthropist, he never makes any of his donations or charitable initiatives public. His acquaintances claim he’s assisted a number of employees who have had major health problems, and he’s even paid for the college tuition for an employee’s children after the employee’s demise death.

Abel, on the other hand, has remained silent about the incident.

Abel may want to be unnoticed, yet he is far from shy and reclusive. He and his wife, according to his neighbors, maintain an open-door policy for Thanksgiving and are regulars at the Iowa State Fair. He also plans an annual quail hunting trip to Georgia with pals, who all get a free pass to visit Abel’s for a hockey or football game.

With respect to Greg Abel’s net worth, he doesn’t follow any spendthrift lifestyle.

Momentous Professional Journey

From doing small work to bringing in bigger fortunes, Greg Abel’s net worth seems to be inspiring for the commons. Abel sowed the seeds of his professional career as a chartered accountant in San Francisco after graduating from the University of Alberta. Later in 1992, he joined CalEnegy, a geothermal electricity generator, after several years with the corporation.

Abel was named to Berkshire Hathaway’s board of directors in 2018 after establishing his worth as the CEO of BHE for a decade. He also became vice chairman for non-insurance operations at the same time. He is also the director of the Hockey Canada Foundation, the American Football Coaches Foundation, Kraft Heinz, the Mid-Iowa Council Boy Scouts of America, Nuclear Electric Insurance Limited, and Associated Electric & Gas Insurance Services Limited among other organizations.

Greg Abel claimed to be passionate about his work and stated that he is still as enthusiastic as ever.

“I want to make a difference. Greg said, “I want to roll up my sleeves and actively participate in making our company successful.” “I believe that hard work yields positive results. I learned in school, athletics, and business that if I put in a lot of effort and was well-prepared, I would have a better chance of succeeding.”

Abel, who is a decade younger than the other Vice-Chairman of Berkshire Hathaway, Ajit Jain at 59, is the obvious pick if for no other reason than his age. If he gets the position, there’s a better chance he’ll stay at Berkshire for at least a couple of decades, which Buffet sees as a distinct advantage.

“The chances of someone having a 20-year runway though makes a huge difference,” Buffet said.

With a big role comes greater responsibility. According to Berkshire Hathaway Energy’s 2020 annual report, Abel owns 1% of the company, billionaire Walter Scott owns 7.9%, and Berkshire Hathaway owns the rest 91.1 percent. According to Berkshire’s latest proxy statement, the company repurchased $126 million worth of shares from Scott on March 5, 2020, valuing BHE at $53.4 billion.

Greg Abel’s stake in BHE accounts for the majority of his net worth.

Gunjan Seth
Gunjan Seth is an MBA graduate and is experienced in writing for multi-dimensional genres. With a keen interest in content writing and communications, she likes to explore different arrays of website content and branding strategies. Besides giving proper attention to details and being ambitious, she is a big travel enthusiast.

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