Warren Buffet and Berkshire Hathaway CEO Succession Lessons
When designing a CEO succession program for our clients, we've found that having years rather than months makes a significant difference. We encourage clients to begin thinking about CEO succession with at least four years of lead time. Ideally, this planning is integrated into a broader approach to leadership continuity, which consistently builds confidence in the talent pipeline year over year, step by step.
So, why is more time helpful? I believe it's because CEO succession is essentially about forming a hypothesis regarding an individual's potential to excel. More time allows us to systematically test that potential by providing candidates with meaningful job assignments. These assignments enable individuals to demonstrate their capabilities, ideally supported by mentorship and guidance.
A prime example of effective succession planning is Greg Abel's announcement as Warren Buffett's successor. Abel's rise was characterized by significant accomplishments and a talent for nurturing ventures to achieve impressive results. With each success, Buffett progressively expanded Abel's responsibilities. Over time, this allowed Abel to gain broad exposure to diverse business areas, ultimately making a significant impact across the organization.
Can you imagine having a track record like this for your CEO successor? The time to get started is now.
References:
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2. How Warren Buffett is preparing for retirement: a theatrical succession - ENEB, accessed July 22, 2025, https://eneb.com/how-warren-buffett-is-preparing-for-retirement/
3. Who is Greg Abel, the executive picked to be successor to Warren Buffett? - Virginia Business, accessed July 22, 2025, https://virginiabusiness.com/greg-abel-berkshire-hathaway-ceo-succession/
4. Does Warren Buffett's Succession Mean the End of the 'Buffett Premium'? - Investopedia, accessed July 22, 2025, https://www.investopedia.com/warren-buffett-s-succession-11751336
5. Greg Abel: Warren Buffett's Successor's Life, Salary, and Accomplishments - Investopedia, accessed July 22, 2025, https://www.investopedia.com/financial-edge/1211/introducing-warren-buffetts-successor.aspx
6. Who is Greg Abel, successor to Warren Buffett and Berkshire ..., accessed July 22, 2025, https://www.independent.co.uk/news/world/americas/greg-abel-warren-buffett-berkshire-hathaway-successor-b2744376.html