According to a recent Associated Press review of Equilar data, median total compensation for S&P 500 CEOs jumped 9.7% in 2024, reaching $17.1 million. This notable increase tracks a robust year for the U.S. stock market, where the S&P 500 index surged more than 23%, and corporate profits grew over 9%.
The study analyzed compensation data from 344 CEOs at S&P 500 companies who had served at least two full consecutive fiscal years, based on proxy filings between January 1 and April 30, 2025. Compensation details include base salary, bonuses, stock and option awards, deferred earnings, and other perks, including executive security benefits—a component that grew 21.5% to a median of about $286,000.
Stock-based incentives continue to dominate CEO pay packages. Equity awards comprised approximately 71.6% of median compensation, roughly $10.3 million, marking a 14.7% increase YoY. In contrast, base salaries rose a modest 4%, while performance‐based bonuses were up just 0.8%.
At the very top of the list is Patrick “Rick” Smith, CEO of Axon Enterprises—the company behind Taser devices and body cameras—with compensation totaling $164.5 million. His package is almost entirely equity-based, contingent on performance benchmarks tied to company results through 2030. Axon recorded three consecutive years of over 30% revenue growth and posted a record $377 million net income in 2024; its stock more than doubled last year.
Other leading CEOs include Lawrence Culp of GE Aerospace ($87.4 million), Apple’s Tim Cook ($74.6 million), Carrier Global’s David Gitlin ($65.6 million), and Netflix’s Ted Sarandos ($61.9 million), with equity awards similarly dominant in their compensation packages.
While CEO pay surged, the average U.S. private‑sector employee saw a modest 3.6% annual increase in total wages and benefits, with an average salary of about $65,460. Within the S&P 500 cohort, the median worker earned $85,419, up just 1.7%. These figures reflect a steep disparity: as of 2024, CEOs earned about 192 times their typical employee counterparts—up from 186:1 the previous year. At certain companies like Carnival Corp., the ratio reached a staggering 1,300:1; at McDonald’s, around 1,000:1.
That growing pay gap has raised questions among investors and governance experts. Compensation specialists note that stock-linked equity encourages CEOs to prioritize long-term performance and align incentives with shareholder interests. Dan Laddin of Compensation Advisory Partners remarked that “2024 was expected to be a strong year, so the (nearly) 10% increases are commensurate with the timing of the pay decisions”. Similarly, Jackie Cook from Morningstar Sustainalytics emphasized the signal value of performance-based pay, while observing that equity awards have “widened the pay gap within workplaces”.
Critics argue the disparity exacerbates inequality and can harm morale. Sarah Anderson of the Institute for Policy Studies stated that although worker pay increases are overdue, “too many workers in the world’s richest countries still struggle to pay their bills”. Utah State sociologist Christy Glass added that despite a slight increase in female CEO representation and pay, “we’re really not moving the needle significantly” regarding equity.
On the topic of gender dynamics, female CEOs fared particularly well. Of the 344 CEOs in the study, 27 were women—the highest number since 2014—and they achieved a higher median pay rise of 10.7%, equating to about $20 million. The top-paid woman was Judith Marks of Otis Worldwide, with a compensation package of $42.1 million.
The broader context suggests that while executive compensation reflects market and performance realities, it also highlights societal concerns around income distribution, corporate governance, and labor equity. The U.S. mandate for CEO-to-employee pay ratios—introduced in 2018—aims to shed light on these disparities, but discussions continue over whether more substantive reform is needed.
Looking ahead, boards and compensation committees face mounting pressure. They must design packages that reward genuine performance and address shareholder scrutiny while messaging fairness and transparency. Proxy advisory firms and activist investors increasingly focus on pay metrics, alignment with ESG goals, and the proportion of pay delivered in stock.
Companies must balance incentivizing top talent through equity rewards with broader societal expectations around fairness and governance. As 2025 progresses, compensation trends, disclosure practices, and shareholder responses will remain under close watch.
