Warren Buffett has set up a leadership succession at Berkshire Hathaway, this is him
Windowofworld.com – Speculation over who will be the leader of the Berkshire Hathaway conglomerate has begun to unfold.
It turns out that the two current leaders of Berskhire, Warren Buffett and Charlie Munger, have prepared the next CEO if something unexpected happens to them for the survival of the investment company.
It’s only natural to prepare the next leader of Berkshire Hathaway. Remembering that the two leaders of Berkshire Hathaway are now very old. Suppose Buffett is already 90 years old and his deputy Munger is even older at 97 years.
The prepared leader is named Greg Abel who is currently the vice chairman of Berkshire Hathaway. “Greg will keep his culture,” said Munger as reported by CNBC. Munger went on to explain that the company’s decentralized nature would outlast him and Warren Buffett.
Munger’s comments were enough to shed some light on Berkshire observers, who have been wondering about succession plans at the conglomerate after Chairman and CEO Buffett, now 90, is no longer in power.
For many, this suggests the top job will go to Vice Chairman Greg Abel, who currently runs all non-insurance operations.
“The directors agreed that if anything happened to me tonight, it was Greg who would take over tomorrow morning,” Buffett said. He praised Greg Abel and Deputy Chairman Ajit Jain, who run all of Berkshire’s insurance operations.
The two have been seen in the running for the top since they were promoted to vice chairman of the company in 2018. “If, for example, something happens to Greg tonight then Jain is taking over the reins,” Buffett said.
He added, “that age is a determining factor for a board position in the company. Abel is currently 59 years old and Jain is 69 years old. They are both extraordinary men. The possibility of someone having a runway for 20 years makes a real difference.
The question of who will take over after Buffett has been the source of speculation for more than 15 years. For years, it was assumed that Buffett’s successor would be David Sokol, who ran MidAmerican Energy, now Berkshire Hathaway Energy, and NetJets for Berkshire.
But Sokol left Berkshire in 2011 after it was revealed he had bought a $ 10 million stake in the Lubrizol chemical company shortly before recommending Berkshire buy the company’s stock.
From Buffett’s perspective, Munger only acknowledges what has become common practice for the board of directors. “We’ve always been at Berkshire basically having a unanimous agreement on who should take over the next day,” Buffett said. “The world is paying more attention now.”