Warren Buffett’s Retirement: Why Announcing in May Matters More Than Staying Around
At 95, Warren Buffett retires tomorrow, January 1, 2026, as CEO of Berkshire Hathaway after 60 years at the helm, and Greg Abel takes over.
Buffett announced his retirement plan in May and gave his organization seven months to prepare and orchestrate intentional transition design. However, folks in my line of work know that it’s never a true step down for high stakes organizations and leaders.
As expected, he shared this week that reveals the real model: he'll continue going into the office daily, remain chairman and "offer Abel any advice he asks for."
The Model Most Boards Never See
I always recommend departing CEOs and Executive Directors stick around NO longer than two weeks, one month at the most. Your physical presence after transition creates confusion about who's actually in charge, no matter how good your intentions.
Buffett announced in May that he'd retire December 31. That's seven months of structured transition planning. Not gradual handoff. Not operational overlap. Strategic preparation time while he was still fully in the CEO role.
Buffett acknowledged his declining energy, balance, vision, hearing, and memory—the very things he asked his children to tell him about if they noticed slippage. He then announced the decision, with this honest statement: "The difference in energy level and just how much [Abel] could accomplish in a 10-hour day compared to what I could accomplish in a 10-hour day—the difference became more and more dramatic."
Note: I don’t recommend 10 hour days as a norm!
One thing I find interesting about Buffett’s resignation announcement is that he shared the news apparently without Abel having advance knowledge. “I think the time has arrived where Greg should become the chief executive officer of the company at year end,” Buffett said during Berkshire Hathaway’s annual shareholder meeting. Abel had been Buffett’s designated successor for years, however it was allegedly assumed he would not take over until after Buffett’s death, as he’d always said he had no plans to retire. The only board members with advance knowledge of the retirement announcement were two of his children, Howard and Susie Buffett.
“I just want to say I couldn’t be more humbled and honored to be part of Berkshire as we go forward,” Abel said, as reported by the AP News, after hearing the announcement.
What Nonprofit Boards Can Learn From This Announcement
First, the advance notice model creates space for actual succession planning. Most nonprofit EDs announce departures with 30-90 days notice. Buffett gave seven months. In Berkshire Hathaway’s case, hopefully these months allowed for:
Documenting institutional knowledge that lives only in the outgoing leader's head
Creating transition materials the new leader actually needs
Identifying what questions the successor should be asking
Board preparation for their role in supporting the new executive
Second, Buffett's been building this transition for years. Abel was publicly identified as successor in 2021 and has been managing all much of the business lines since 2018. By the time the May announcement came, Abel had years of operational leadership under his belt. This is serious capacity building and leadership development.
Third, the "advice when asked" model only truly works AFTER the departing leader is actually gone. Per the news, Buffett will remain board chairman. While he is transitioning to a governance role with clear boundaries, I don’t love this as a model for most organizations to follow. Former CEOs on boards create their own complications and I’ve yet to see an example of a nonprofit truly benefit from an outgoing leader moving to be seated as a voting member of the board.
The Nonprofit Reality Check
What I see constantly in my line of work:
Boards who haven't prioritized succession planning at all
Outgoing EDs who announce departures with only 30 days notice (or less)
Former EDs who "stay on the board" and undermine their successor from a governance seat
Or worse—departing leaders who hang around for 3-6 months "to help with transition," creating role confusion and preventing the new leader from establishing authority
Succession planning rates in the nonprofit sector have barely budged—from 17% in 2011 to 27% by 2024—while burnout hit 95% of leaders. Meanwhile, Buffett spent years publicly identifying his succession plan, building Abel’s capacity to lead, and then gave seven months notice when he made the actual retirement call.
The Questions Your Board Should Be Asking
Can your ED / CEO honestly assess their own capacity and timeline for leaving? Or are you waiting for crisis, burnout, or board intervention to force the conversation?
If your ED / CEO announced they're leaving in 6-8 months, what would you do with that time? Most boards have no plan. That's the problem.
What institutional knowledge exists only in your current leader's head? Start documenting it now, not during a 30-day scramble after they announce departure.
Who on your board is responsible for ensuring the new executive gets the support they need in year one? Not "the Executive Committee." Not "we'll figure it out." Who specifically owns this?
What does your organization's version of "capacity building” for the succession plan look like? If you don't have an internal successor ready, what's your pipeline development strategy?
What This Isn't
This is NOT an argument for departing nonprofit leaders to stick around. If anything, it's the opposite. Clean breaks matter. New leaders need space to establish authority without the previous ED lurking.
But it IS an argument for:
Advance notice that allows actual planning (6-8 months when possible, not 30 days)
Intentional documentation of institutional knowledge before departure
Clear timeline and boundaries (last day is last day, not "I'll be around if you need me")
Board ownership of new executive support structures
Strategic succession thinking years before transition, not crisis-driven replacement hiring
The Seven-Month Detail Everyone's Missing
May to December. That's what Buffett gave his organization.
Imagine what your board could do with seven months notice!
Create comprehensive transition documentation
Identify and address organizational gaps before the new leader inherits them
Build board capacity to support a new executive
Develop onboarding structures that actually work
Address the "we’ve always done it this way” statements proactively through documentation
The Bottom Line
Buffett's keeping every share of his Berkshire stock—$150 billion worth—and believes "the prospects of Berkshire will be better under Greg's management than mine." He announced the transition in May for a December 31 effective date. He built Abel's capacity for years before that. And on January 1, Abel becomes CEO with full authority while Buffett transitions to a governance role.
What would your organization’s version of this look like? The default nonprofit approach—either sudden abandonment with 30 days notice or messy months-long "transition overlap"—does not work. A whopping 95% burnout rate and the 73% of organizations without succession plans prove it.
The question is: what's your board's plan for succession? Does it involve more than "we'll post the job when our ED announces they're leaving"?
Sources:
CNN Business: "With Warren Buffett's retirement, Berkshire Hathaway loses its best pitchman" (December 27, 2025)
Fortune: "Warren Buffett plans to keep coming to the office every day" (December 30, 2025)
PBS NewsHour: "Warren Buffett makes surprise announcement" (May 3, 2025)
NBC News: "Warren Buffett retires as Berkshire Hathaway CEO" (December 31, 2025)