Two iconic business leaders demonstrate this stepping down as CEO doesn’t have to mean leaving a company.
Tim Cook has resigned as CEO of Apple this month after 15 years in the role, while Warren Buffett ended its six-decade run as CEO of Berkshire Hathaway early this year.
Still, Cook is about to become Apple’s CEO and deserves one CEO-sized salary and play an ambassadorial role. As chairman of Berkshire, Buffett continues to select stocks and help make important decisions.
There are clear parallels between the two men’s approaches life after the CEOKevin Carpenter, who runs an investing Substack called Kingswell and writes the newsletter “The Berkshire Beat,” told Business Insider.
‘They each passed the torch the next generationwhile still remaining heavily involved behind the scenes,” Carpenter said, noting that Cook has said Apple will remain his primary focus.
Apple and Berkshire did not immediately respond to requests for comment.
Stay busy
Buffett told CNBC in March that Cook “somehow gets along with everyone in the world.” Carpenter said this capability could allow Cook to be a “kind of diplomat” for Apple and “leverage the relationships” he has with governments, regulators, suppliers and other parties.
Apple has said that as chairman, Cook will help “collaborate with policymakers around the world.”
Cook has been described as a “Trump whisperer” for his close relationship with the president. During his tenure as CEO, Apple gave gifts to Trump, donated to the construction of the White House ballroom and pledged to invest in American manufacturing.
After news broke of Cook’s departure, Trump posted on Truth Social that he had “always been a big fan” of the executive, and praised Apple’s success under Cook’s leadership.
Cook, who succeeded Apple co-founder Steve Jobs, took the company to new heights scaling and strengthening the global supply chain and catering to China’s growing middle class.
Apple clearly expects Cook to continue to generate value, as his target compensation for fiscal 2027 is $45 million before cash bonuses, not far off from the new CEO’s $58 million figure. Johannes Ternus.
As for Buffett, he is responsible for construction an Alphabet stock from nowhere to the third largest position in Berkshire’s stock portfolio in less than twelve months. At the end of June, the holding company was worth about $38 billion.
Berkshire’s new CEO Greg Abelhas said he regularly speaks with Buffett and consults with him on major decisions, including the acquisition of homebuilder Taylor Morrison and the private placement of Alphabet earlier this year.
‘Just like Buffett is making Abel’s job easier “By remaining so involved with Berkshire’s equity portfolio, I believe Cook will do the same for Ternus by tackling tougher political, antitrust and trade issues that may be too much for a brand new CEO,” said Carpenter.
Finding the right balance
Keeping Cook and Buffett so central to their businesses could bring benefits, but also risks, Larry Cunningham told Business Insider.
“Retaining an iconic predecessor as chairman can provide a new CEO with both continuity and guidance – but only if the predecessor resists becoming a shadow CEO,” says the director of the University of Delaware’s Weinberg Center for Corporate Governance and author of several books. about Berkshire.
“The key is ‘wisdom without command,’” Cunningham said.
If Cook and Buffett allow their successors to do so run the showthey can avoid pitfalls such as leadership confusion and power struggles, while adding value by taking on responsibilities that match their skills, namely diplomacy and stock selection.
