Berkshire Hathaway Inc. followed Chief Executive Officer Warren Buffett's recommendation, naming Vice Chairman Greg Abel to replace the billionaire as CEO, effective Jan. 1.
The vote Sunday by Berkshire's directors was unanimous, the Omaha, Nebraska-based said in a statement Monday. Buffett will remain chairman of the board, Berkshire said.
On Saturday, Buffett, 94, picked the final minute of his 60th shareholder meeting to drop the long-awaited succession announcement — one that nevertheless came as a surprise to investors, most of his board and even Abel. Abel, 62, will oversee a conglomerate with nearly 400,000 employees at businesses spanning insurers, manufacturers and a top US railroad. Buffett assembled the portfolio through decades of takeovers.
Given Berkshire's cash hoard of almost $350 billion, Abel — vice chairman of non-insurance operations and one of the company's most acquisitive managers — will get to put his stamp on Berkshire with more buyouts and investments.
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