Tim Cook and Warren Buffett are showing what former CEOs can do for their companies

Two iconic business leaders are showing that stepping down arsenic CEO doesn't person to mean stepping distant from a company.

Tim Cook resigned arsenic Apple's CEO this period aft 15 years successful the job, while Warren Buffett ended his six-decade run arsenic Berkshire Hathaway's CEO astatine the move of this year.

Yet Cook is group to go Apple's executive chair, earning a CEO-sized paycheck and playing an ambassador-like role. As Berkshire's chair, Buffett continues to prime stocks and thief make cardinal decisions.

There are clear parallels betwixt the 2 men's approaches to post-CEO life, Kevin Carpenter, who writes an investing Substack named Kingswell and "The Berkshire Beat" newsletter, told Business Insider.

"They each passed the torch to the adjacent generation, while still staying heavy progressive down the scenes," Carpenter said, noting that Cook has said Apple will stay his main focus.

Apple and Berkshire didn't instantly respond to requests for comment.

Keeping busy

Buffett told CNBC successful March that Cook "somehow gets on pinch everybody successful the world." Carpenter said that this expertise could let Cook to beryllium a "diplomat of sorts" for Apple and "leverage the relationships" he has pinch governments, regulators, suppliers, and different parties.

Apple has said that arsenic chair, Cook will thief pinch "engaging pinch policymakers astir the world."

Cook has been described arsenic a "Trump whisperer" for his adjacent narration pinch the president. During his tenure arsenic CEO, Apple gave gifts to Trump, donated toward the building of the White House ballroom, and pledged to put successful US manufacturing.

After news collapsed of Cook's departure, Trump posted connected Truth Social that he had "always been a large fan" of the executive, and praised Apple's occurrence nether Cook's leadership.

Cook, who succeeded Apple cofounder Steve Jobs, took the institution to caller highs by scaling and strengthening its world proviso concatenation and catering to China's mushrooming mediate class.

Apple intelligibly expects Cook to proceed generating value, arsenic his target compensation for fiscal 2027 is $45 cardinal earlier rate bonuses, not acold disconnected the $58 cardinal fig for caller CEO John Ternus.

As for Buffett, he's responsible for building an Alphabet liking from scratch into the third-biggest position successful Berkshire's banal portfolio successful nether 12 months. The holding was worthy astir $38 cardinal astatine the extremity of June.

Berkshire's caller CEO, Greg Abel, has said he often speaks pinch Buffett and consults pinch him connected awesome decisions, including the acquisition of housebuilder Taylor Morrison and Alphabet's backstage placement earlier this year.

"Just for illustration Buffett is making Abel's occupation easier by staying truthful progressive pinch Berkshire's banal portfolio, I deliberation Cook will do akin for Ternus by handling stickier issues successful the political, antitrust, waste and acquisition realm that mightiness beryllium excessively overmuch for a marque caller CEO," Carpenter said.

Finding the correct balance

Having Cook and Buffett stay truthful cardinal to their companies could output benefits but besides poses risks, Larry Cunningham told Business Insider.

"Keeping an iconic predecessor arsenic president tin springiness a caller CEO some continuity and counsel — but only if the predecessor resists becoming a protector CEO," said the head of the University of Delaware's Weinberg Center for Corporate Governance and the writer of respective books about Berkshire.

"The cardinal is 'wisdom without command,'" Cunningham said.

If Cook and Buffett let their successors to run the show, they whitethorn beryllium capable to debar pitfalls specified arsenic activity disorder and powerfulness struggles, while adding worth by taking connected responsibilities that suit their accomplishment sets, namely diplomacy and picking stocks.