After 56 years, Warren Buffett gives up Berkshire chair as son Howard takes over

MUMBAI: Warren Buffett has stepped down as chairman of Berkshire Hathaway, moving into the honorary role of chairman emeritus while remaining on the company’s board of directors.

His son Howard Buffett, who has served as a Berkshire director since 1993, has been elected as the new non-executive chairman of the board. The change marks the formal completion of a succession plan that has been years in the making at the more than $1.2 trillion conglomerate.

Buffett, 96, had served as Berkshire Hathaway’s chairman since 1970. In his new role, he will remain on the board and continue to offer guidance and investment perspective, but will no longer preside over board leadership.

The division of responsibilities also leaves Greg Abel firmly in charge of Berkshire’s operations. Abel, who succeeded Buffett as CEO, continues to oversee day-to-day operations, capital allocation and the company’s subsidiaries.

Howard Buffett’s appointment reflects a responsibility his father has long associated with the chairman’s position after his own departure: protecting Berkshire’s culture and values.

Rather than taking over capital allocation or operational decision-making, Howard is expected to safeguard the company’s decentralised structure, shareholder-first approach and the autonomy given to its managers.

Susan Decker remains Berkshire Hathaway’s lead independent director, maintaining continuity in the board’s structure.

In a letter to shareholders accompanying the announcement, Warren Buffett expressed confidence in Abel’s leadership and described the complementary roles of his son and successor.

Buffett said, “Greg runs the company; Howard will guard its culture and values”, while describing both as more valuable than anything on Berkshire’s balance sheet.

He also acknowledged the inevitability of succession with his characteristic humour, saying that “Father Time always wins”. Buffett said Abel had taken complete control of the CEO role and had exceeded his expectations in handling major capital and operating decisions.

Howard Buffett has been a Berkshire Hathaway director for more than three decades. Outside the boardroom, he is a farmer, conservationist, author and former sheriff.

He also runs the Howard G. Buffett Foundation, which focuses on areas including global food security, conflict mitigation and public safety.

His corporate responsibility at Berkshire is closely tied to preserving the reputation and long-term relationships that have been central to the company’s operating model.

The leadership change does not represent a shift in Berkshire Hathaway’s day-to-day operations. Abel remains responsible for running the business, while investment managers Ted Weschler and Todd Combs continue to play key roles in capital allocation.

The separation of the CEO and chairman positions also creates a clear division between operational leadership and oversight of the company’s culture and governance.

For Berkshire, the transition is the latest step in a succession process that has been planned and communicated over several years, formally moving Warren Buffett away from the chairmanship while keeping his experience on the board.