Nebraska [US], September 18 (ANI): Berkshire Hathaway has named Warren E Buffett as Chairman Emeritus with immediate effect, while his son Howard G Buffett has been elected Chairman of the Board as part of the company's long-planned leadership transition.

Warren Buffett will, however, continue to remain a member of Berkshire Hathaway's Board of Directors and will continue to offer his judgment and perspective to the company, Berkshire said in a statement. 

The Chairman Emeritus position is an honorary role given to a former chairman in recognition of his long association and contribution to a company. In Buffett's case, it does not mean that he will continue as Berkshire's Chairman. Howard Buffett is now the Chairman of the Board, while Warren Buffett will remain a director and continue to advise the company.

Greg Abel will continue as Berkshire Hathaway's Chief Executive Officer and will be responsible for running the company's day-to-day business.

Warren Buffett also made the division of responsibilities clear in a letter to shareholders, saying Abel 'has taken hold of the Chief Executive Officer job in every respect' and has been making key decisions for the company. 

He said the time was right to complete the leadership transition.

'So the timing is right to complete the transition. I will become Chairman Emeritus and remain a Director. My son, Howard, will succeed me as Chairman,' Buffett said. 

Buffett said Abel will run the company, while Howard Buffett will have a different role focused on protecting Berkshire's culture and values.

'Greg runs the company; Howard will guard its culture and values - both worth more than anything on our balance sheet,' he said. 

Howard Buffett has been a Berkshire director since 1993. He has also served as Chairman and Chief Executive Officer of the Howard G. Buffett Foundation since 1999. 

Susan L Decker will continue to serve as Berkshire Hathaway's Lead Independent Director.

Greg Abel, speaking on behalf of Berkshire's Board, said Warren Buffett's impact on the company and its shareholders was 'without parallel in the history of American business', adding that the culture and values built by him would remain at the heart of Berkshire. 

Warren Buffett, who has served Berkshire since 1965, said he would remain a shareholder alongside other investors after stepping down as Chairman. (ANI)