April 30, 2025
CEO Pay Growth Slowed (Slightly) Last Year
Most S&P 500 CEOs earned more compensation last year than in 2023 – but 31% experienced a drop in pay in 2024. That resulted in an overall median increase of 7.5%, compared to a 9.2% increase for the prior year-over-year period. These numbers come from a recent proxy statement analysis by ISS-Corporate Solutions of 320 large-cap companies. Here are a few more stats:
– Median pay was $16.8 million
– For the 69% of CEOs who earned more pay, the median increase was 13.2%
– For the 31% of CEOs who earned less pay, the median decrease was 7.2%
ISS-Corporate notes that pay growth was largely driven by increases in the value of equity awards, in light of strong total shareholder returns. So, executives might see lower pay this year if the market stays down. The magnitude and direction of pay changes also varied across industries:
Industries with the most drastic increases in CEO compensation include Consumer Durables & Apparel and Commercial & Professional Services with median changes of 21.2 percent and 16.9 percent respectively. CEO compensation decreased by a median of 4.4 percent for companies in the Food, Beverage, & Tobacco industry.
For more info on trends and pay practices – including compensation surveys – see our “Determining How Much Pay is Appropriate” Practice Area.
– Liz Dunshee