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

Tim Cook and Warren Buffett exemplify how former CEOs can continue to play pivotal roles in their companies post-retirement. Cook, who recently stepped down as Apple CEO after 15 years, is set to become the company's executive chair, earning a CEO-sized salary and leveraging his global connections to engage with policymakers and other stakeholders.

Similarly, Buffett, who ended his six-decade tenure as Berkshire Hathaway CEO, continues to select stocks and advise on major decisions as the company's chairman. Both leaders have shown that stepping away from the CEO role does not mean stepping away from the company, as they remain heavily involved behind the scenes. Kevin Carpenter, an investing expert, notes that Cook's ability to relate to people worldwide and Buffett's knack for building relationships with key stakeholders could prove invaluable as they guide their respective companies.

While having such iconic figures as chairmen can bring continuity and counsel, there is a risk that they may become too involved, leading to confusion about leadership roles. Therefore, the key to success in these roles is maintaining wisdom without command, allowing new CEOs to focus on running the company while the former CEOs handle responsibilities that align with their expertise, such as diplomacy and stock selection.