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| Warren Buffett, Chair and CEO, Berkshire-Hathaway, Inc. CNN Business |
"In three words I can sum up everything I've learned about life: It goes on."
—Robert Frost
In moments of reflection, clients have sometimes asked, "How will I know when it's time to go?"
That's a difficult question for an outside party to answer. A decision of that magnitude is usually the result of a cascade of experiences rather than a sudden reaction to life. Although moments of finality can arise quickly.
On May 3, 2025, at the Berkshire Hathaway Annual Meeting in Omaha, Nebraska, Warren Buffett concluded a five-hour question-and-answer session by announcing to a stunned audience at the CHI Health Center that he would be stepping down as CEO at the end of this year. Only two people knew this in advance—his son, Howard, and daughter, Susan, both members of the Berkshire board.
The plan is for Buffett to remain Berkshire's board chair, with Howard as his heir apparent to help safeguard the organization's culture.
In an interview with The Wall Street Journal published on May 14, Warren Buffett said he can't put his finger on exactly when he decided to turn the business over to his designated successor as CEO, Greg Abel.
"There was no magic moment," Buffett, then 94, said in that interview with the Journal. "How do you know the day that you become old?" He added, "I didn't really start getting old for some strange reason until I was 90. But when you start getting old, it does become—irreversible."
First, Buffett began to lose his balance and sometimes had trouble recalling people's names. "Suddenly, he said, newspapers I read looked like they were printed with too little ink."
Hearing became a problem, too, as he and long-time business partner and sounding board, Charlie Munger, who passed two years ago just shy of 1o0, talked by phone between Omaha, Nebraska, and Los Angeles.
Buffett was 34 when he took over Berkshire Hathaway, a floundering New England textile maker, in the spring of 1965, initially purchasing shares at $7.50. A share of Berkshire Class A stock, with major holdings in Apple, Coca-Cola, GEICO, Dairy Queen, and See's Candies, closed on Friday, November 28, at $770,100.00.
Longevity of leadership
Frequent turnover in top positions can harm an organization's health and its ability to fulfill its purpose and implement its strategy. Yet, staying too long poses its own set of risks. Striking the right balance becomes a stabilizing force, especially in troublesome times. Succession planning is therefore a must.
Longevity and leadership are not the same things. There has to be something more to qualify an executive for an extended term than availability. Warren Buffett's investment skills make that point.
As of the end of September, 43 CEO exits had been announced this year, a 79% increase from the same period in 2024, according to a report from Challenger, Gray, and Christmas. Executives from Kohl's, Kroger, X (formerly Twitter), and Amtrak are among those who left office this year.
Why chief executives are leaving varies. Most simply state they are "stepping down" from their roles, as Walmart CEO Doug McMillon did, reflecting an orderly transition. "Retirement" or "no reason given" were also listed.
Others leave, too
As much attention as those at the top generate for coming and going, employees in all walks of corporate life come and go as well. Managers, supervisors, and front-line workers think about leaving at different times, especially when co-workers do.
Major contributors often find it difficult to quit with responsibilities for teams and business units.
"Quitting as a manager can inadvertently send the wrong message to your future employers. It may raise questions about your ability to handle challenges and resolve organizational issues," writes Jason Evonish. "Depending on how long you have been at your current role, and the nature of your departure, future employers may wonder if you're someone who jumps ship at the first sign of trouble," Evonish adds.
However, being an unhappy manager or office worker can impact those around you. Gallup calls this the "cascade effect."
Camille Fournier, former vice president of technology at Goldman Sachs, offers this advice: "Senior leadership is a hard job. It requires stamina to handle many painful setbacks, interpersonal challenges, and stressful decisions. But that doesn't mean that you have to let yourself get burned out completely."
Fournier makes the point of regularly checking in with yourself.
"If you spend 3, 6, or 9 months being miserable due to your job, you are risking burnout. Once there, it's hard to bounce back without taking some time off work completely," Fournier adds. "Your team deserves a leader who can give them the right positive attention and energy."
Nineteenth-century evangelist, publisher, and educator, Dwight L. Moody, said, "I am weary in doing the work. I am not weary of the work."
Moody's thought would resonate with many.
Why leave
While valuing loyalty as a two-way street, Lead-from-the-Heart author Mark Crowley offers two primary reasons why leaving a company would make sense.
"The first would be if the company changed in some way, or if I were given a boss who treated me disrespectfully, or failed to support my needs in important ways.
"The other reason has little to do with the current employer, and far more to do with a chance to do work that really challenges and makes your heart sing."
Leaving is not always our decision. We can be nudged out, or the working relationship can be terminated, as with the significant layoffs announced at Verizon, Amazon, and UPS. To quote the best-selling author, Arthur Brooks, "Sometimes you leave before you're ready or on someone's terms."
Legitimate departures include retirement, health, limited growth prospects, and strategic differences. (Oggitalent.com, Schaef and Fassel)
It may be time to see more of the world (and your grandchildren) while you can.
How to leave
John Quelch, a British-American academic and former professor at the Harvard Business School, suggests ways for leaders to leave. How to resign with grace and class—without burning bridges along the way:
Think it through. Discuss your career ideas and concerns with family, adult children, and two or three individuals whose judgment you trust.
Meet with the boss. No one likes a surprise exit, so don't walk into the boss's office and declare you've had enough. Be prepared to discuss your concerns, career prospects, and workplace culture with your supervisor. Would you stay under different circumstances?
Prepare your departure announcement. Ask your boss or board chair for permission to see and contribute to the announcement before it's released. Avoid a statement that you are leaving to pursue other opportunities or spend more time with family. If possible, coordinate any announcement with one about your successor.
Advise, but only if asked. Your boss or human resources may ask for your opinions about who should succeed you. Give fair and balanced responses, but do not discuss these opinions with others in the organization.
Sequence your communications. Make a plan for informing people. Especially a personal assistant, direct reports, and other close colleagues.
Keep calm and carry on. Once the news is out, plenty of gossip is bound to circulate about why you are leaving and where you are going next (if those details were not included in the announcement). Usually, you won't hear from those who are pleased or relieved to see you go. Second-guessing a decision is normal.
Prepare to exit. Consider preparing reference letters for trusted colleagues to add to their personal files. Leave a broom-clean office, arrange to have your computers cleaned, and hand in the office and parking area keys. Avoid fanfare on your final day.
Strategist.com
© Bredholt & Co.
