The restructuring process at Berkshire Hathaway began even before the departure of mega-investor Warren Buffett, who, at 95 years old, will step down as head of the investment firm at the end of December, after nearly 60 years at the helm of the company.
The company announced its biggest restructuring in recent years, which includes, among other changes, an unexpected departure (Todd Combs), a retirement (Marc Hamburg), and the creation of a new position in the company's organizational chart.
Michael O'Sullivan will fill the newly created position at the company, becoming Berkshire's first general counsel, effective January 1st.
Before joining Snapchat as general counsel in 2017, he spent more than two decades at the law firm Munger, Tolles & Olson, co-founded by Charlie Munger, a former partner of Buffett who died in 2023.
In general, experts reacted positively to the changes announced by the management company, but some believe it may only be the beginning of an even greater reconfiguration. On January 1st, Greg Abel, until then vice president of operations at Berkshire, will take over as CEO, replacing Buffett. And he was chosen by Buffett.
Berkshire's CFO since 1992, Marc Hamburg, will leave his post in June 2026, which will be taken over by Charles Chang, the current CFO of Berkshire Hathaway Energy. To facilitate the transition, Hamburg will postpone his retirement until June 2027.
Adam Johnson, current CEO of NetJets' jet unit, has been named chairman of Berkshire Hathaway's consumer, services and retail division, a group of 32 companies that includes See's Candies, FlightSafety and Fruit of the Loom.
Todd Combs, hired by the 'Oracle of Omaha' in 2010 and considered by many to be a key leader at Berkshire post-Buffett, is another who is leaving the company. He, who was CEO of the insurance company Geico, one of the company's jewels, will head a new investment unit at JP Morgan and serve as a special advisor to CEO Jamie Dimon.
Nancy Pierce, the company's current chief operating officer and nearly 40-year veteran of the group, will assume the role of CEO of Geico. The replacement is seen as a "safe choice" by Berkshire.
The market believes that Ted Weschler, who arrived in 2011, could take control of a larger portion of Berkshire's portfolio and serve as an "advisor" to Abel on important investments, or at least take over Combs' allocation, if he hasn't already done so.
Another key point regarding likely changes has to do with age, since many of Buffett's most trusted names today are already old enough to retire.
