Warren Buffett stepped down as president of Berkshire Hathaway after 56 years: who takes his place

Warren Buffett has stepped down as chairman of Berkshire Hathaway after nearly six decades at the helm of the company.

The 96-year-old mogul has become emeritus chairman, while his son Howard Buffett has taken over as the new chairman of the holding company.

Why Warren Buffett stepped down as chairman of Berkshire Hathaway

The change is part of the leadership transition process at Berkshire Hathaway. Buffett explained in a letter to shareholders that Greg Abel had already fully assumed the role of chief executive officer.

According to Buffett, Abel had been making the key decisions for the company for some time. The businessman had stepped down as CEO at the end of last year and was succeeded by Abel.

Buffett's departure from the chairmanship thus completes the transfer of major executive responsibilities. However, he will remain connected to Berkshire Hathaway from the board of directors.

What position did Warren Buffett take after leaving Berkshire Hathaway

After stepping down as chairman, Warren Buffett immediately took on the role of emeritus chairman. Additionally, he will continue to be a member of the board of directors of Berkshire Hathaway.

The company also specified that Buffett will continue to provide his perspective as an advisor. In his letter, the businessman stated that he had never felt more optimistic about Berkshire's prospects under the new structure.

Who is Howard Buffett, the new chairman of Berkshire Hathaway

Howard Buffett, aged 71, is the new chairman of Berkshire Hathaway. He has been part of the board of directors since 1993 and had accumulated 33 years of experience before taking on the presidency.

Buffett noted that his son was following a similar path to the one he himself took before taking control of Berkshire Hathaway at the age of 34.

Since 1999, Howard Buffett has been the president and CEO of the Howard G. Buffett Foundation. He has also served on the boards of various public and private companies.

How responsibilities are distributed at Berkshire Hathaway

The new structure separates the leadership functions of the board from the daily management of the business.

• Howard Buffett: will be responsible for leading the board of directors and overseeing the company's culture and values.

• Greg Abel: will continue as CEO and will be in charge of managing the business.

• Warren Buffett: will remain a board member and will provide his perspective as an advisor.

• Susan Decker: will continue as lead independent director.

Abel highlighted Buffett's role in building Berkshire Hathaway. “Warren's impact on Berkshire and its owners is unparalleled in American business history,” he stated.

“The culture that Warren built and the values he championed will continue to be the essence of Berkshire, and Howard will be its guardian,” Abel added.

What businesses does Berkshire Hathaway have

Berkshire Hathaway operates businesses related to insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services, and retail.

The company's shares are traded on the New York Stock Exchange. The change of chairman formalizes the succession process, with Abel in charge of management and Buffett still connected to the board.