CEO Succession Planning – What Warren Buffett’s Retirement Teaches Us

The announcement that Warren Buffett will soon step down as CEO of Berkshire Hathaway marks the close of an extraordinary chapter in American business. After nearly six decades at the helm, Buffett is preparing to pass the reins to Greg Abel, the company’s vice chairman of non-insurance operations. The move was not unexpected—Abel was named successor in 2021—but nonetheless caught the attention of the investment world.

Buffett’s decision is not just a milestone for Berkshire; it also offers a master class in how to execute CEO succession with foresight, rigor, and grace. His approach holds valuable lessons for boards, CEOs, and HR leaders seeking to build succession plans that are as deliberate and durable as the businesses they support.

Succession Is a Long Game

Buffett was one of the earliest business leaders to emphasize long-term value—not only in investing but also in leadership planning. Abel has been groomed for years, and his appointment feels less like a changing of the guard and more like the natural next step. The takeaway? Start succession planning early—far earlier than most organizations think necessary.

At RHR, we often say CEO succession should begin the day a new CEO is appointed. It’s not an event; it’s an ongoing process. By embedding succession into the leadership fabric of the company, you create not only continuity but also resilience.

Define What Future Leadership Requires

A central question boards must ask is: What will tomorrow demand of our leaders? Buffett and his board clearly considered this. Abel brings operational rigor and deep understanding of Berkshire’s decentralized business model—a leadership fit for what’s next, not just what’s now.

One of the biggest mistakes in CEO succession planning is made when a board assumes the traits of a sitting CEO are what will be required from the next leader. RHR, for example, helps companies align on future skills and competencies needed by the next CEO, given strategic direction, culture, and market realities. Of importance, this is not a static profile of success but a living document used to guide the development of internal candidates and monitor progress.

Work Backward From Readiness

Succession isn’t just about naming a name. It’s about building a bench. What feeder roles and experiences are essential for future success? How much runway is needed to give emerging leaders the time to stretch, fail, and grow?

CEOs who possess great strategic foresight and operational rigor are built over time. Experience brings pattern recognition and situational awareness that provide extra layers of insurance the next leader can navigate an external landscape that is sure to bring unexpected challenges. Buffett’s decision to cultivate Abel over many years—versus parachuting in a star from outside—reflects this understanding. Internal development is not only feasible; it’s often preferable.

Use Data to Remove Bias

Buffett is known for clearheaded, data-driven decisions. The same discipline should apply to succession. Internal politics and gut instinct alone are not enough. Instead, organizations should bring together performance metrics, external assessments, and stakeholder feedback to get a full picture of a leader’s potential and readiness.

This objective lens combined with internal insight helps uncover overlooked talent and guard against assumptions that can narrow the succession pool prematurely.

Broaden the Net and Deepen Engagement

Buffett’s board had visibility into multiple levels of leadership, not just the top team. Boards today should regularly engage with leaders two to three layers below the C-suite—via mentoring, site visits, and informal touchpoints. These interactions provide deeper insight into rising talent and help boards evolve their perceptions as leaders grow.

This broader view also increases flexibility. In a world of constant change, the ideal leader today might not be the ideal leader tomorrow.

Succession Done Right

CEO transitions are among the most consequential moments in a company’s life. Done poorly, they create disruption and distrust. Done well, as in the case of Buffett and Abel, they reinforce continuity, confidence, and strategic momentum. Buffett’s retirement is more than the end of an era—he leaves a legacy not only of financial acumen but also of strategic foresight. Let’s all take a page from his playbook.

Let’s Talk

RHR brings 80 years of experience helping companies orchestrate well-planned CEO successions. As your organization considers its own succession roadmap, ask yourself: Are we thinking far enough ahead? Are we developing our talent with intention? Are we applying the same level of rigor to leadership planning as we do to business planning?

To begin a discussion, reach out.