Median total compensation for S&P 500 CEOs climbed to $17.1 million in 2024, marking a 9.7% increase over the prior year, according to an Associated Press analysis using Equilar data. This significant rise underscores how robust corporate profits and soaring stock prices have powered executive pay—while typical employee salary growth remained modest in contrast.
The AP/Equilar study examined the pay packages of 344 S&P 500 CEOs, all of whom had held their roles for at least two successive years and filed proxy statements between January 1 and April 30, 2025. Median employee compensation across these companies was only $85,419, up a mere 1.7%—highlighting an ever-growing pay gap.
Stock awards are becoming the dominant driver of pay. Median equity grants rose to $10.2 million, up 14.7%, compared to a 4% base salary increase to $1.3 million and a 0.8% increase in performance-based cash awards to $2.5 million. Over half the CEOs received no option awards whatsoever.
This compensation surge mirrors market dynamics: the S&P 500 gained more than 23%, and corporate profits climbed approximately 9% in 2024—which empowered executives to earn payouts tied directly to stock-price and profit benchmarks.
At the top end of the spectrum, Axon Enterprises CEO Rick Smith earned $164.5 million, driven almost entirely by large stock awards contingent on hitting multi-year performance targets. Other high earners included Lawrence Culp of GE Aerospace with $87.4 million, Tim Cook of Apple at $74.6 million, David Gitlin of Carrier Global with $65.6 million, and Ted Sarandos of Netflix at $61.9 million.
In terms of CEO-to-worker pay ratios, the median reached approximately 192-to-1, meaning it would take nearly two centuries for a typical employee to earn what a CEO makes in a year. In some sectors, ratios exceed 1,000-to-1, particularly in low-wage industries.
Female CEOs saw notable, though still unequal, compensation. Of the 27 women included in the study, the median CEO pay was $20 million, surpassing their male peers. Judith Marks of Otis Worldwide led the group with $42.1 million, largely consisting of stock awards.
Experts note that such heavy reliance on performance-based equity aligns executive interests with those of shareholders by incentivizing long-term results. Still, critics argue the widening pay gap undermines employee morale and exacerbates inequality.
This evolving compensation landscape suggests several priorities for corporate finance teams. They must continually benchmark pay structures to ensure competitiveness and alignment with performance metrics. Designing multi-year incentive plans with appropriate performance conditions—such as total shareholder return, market cap, or EBITDA growth—is critical. With rising public and shareholder interest, companies should prepare for heightened scrutiny around CEO-to-worker pay ratios and disclosures. Finally, finance executives must be equipped to clearly communicate the rationale behind executive compensation in the face of growing attention to fairness and corporate governance.
As long as stock market performance and corporate earnings remain strong, CEO compensation—dominated by equity awards—is likely to grow at a faster clip than employee wages. This trend places increasing pressure on boards, compensation committees, and finance functions to balance ambition with responsibility.
