Greg Abel Personally Bought $68 Million of Berkshire Stock in 2022, Years Before Becoming CEO. Here's Why That Early Bet on Himself Still Matters for Berkshire Shareholders Today.
Greg Abel has skin in the game, committing early to eating his own cooking.
Overview
There are times when incentive structures on Wall Street are misaligned. When that happens, you can get very bad outcomes. Greg Abel, who took over as CEO of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) in 2026, made an early commitment to align himself with shareholders. That's a good omen for his tenure atop the giant conglomerate. Here's what you need to know.
Banking giant Wells Fargo (NYSE: WFC) caused material damage to its image by incentivizing employees to open new accounts without proper customer safeguards. Employees ended up earning bonuses for new accounts that customers didn't approve. This scandal is now in the past, but shareholders were hit, too, with legal and settlement costs and a long government cap on the company's ability to expand.
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Originally published at www.fool.com.