By The Associated Press
Updated May 29, 2025
CEO Compensation Soars to $17.1 Million in 2024 Amidst Significant Increases
New York, NY — The compensation packages for top executives at America’s largest publicly traded companies experienced a significant increase in 2024, with the median CEO pay soaring to $17.1 million. This represents a substantial 9.7% rise from the previous year, according to the latest annual analysis conducted by The Associated Press utilizing comprehensive data from Equilar, a leading executive data firm.
The rigorous analysis by Equilar meticulously examined regulatory filings, specifically proxy statements submitted to federal regulators between January 1 and April 30, 2025. The study focused exclusively on chief executive officers within the S&P 500 index. To ensure a consistent and undistorted view of long-term compensation trends, the sample was refined to include only CEOs who had been in their roles for a minimum of two years, thereby excluding the often-volatile effects of sign-on bonuses.
Deconstructing Executive Compensation
Equilar’s methodology for calculating CEO pay encompasses several key components: base salary, annual bonus, various perks, and crucial long-term incentives such as stock awards and stock option awards. These elements are strategically designed to align executive interests with company performance.
Stock awards, for instance, can be structured in two primary ways: time-based, which vest after a specified period, or performance-based, contingent on the achievement of specific corporate goals. Stock options typically grant the CEO the right to purchase company shares at a predetermined price on the date the options are granted. For valuation purposes, Equilar records the estimated value of these stock and option awards on their grant date, as disclosed in the proxy statements. It is important to note, however, that the actual future value realized by the CEO can fluctuate considerably from these initial estimates due to market dynamics and company performance.
2024 Pay Landscape: A Detailed Breakdown
The median total compensation for CEOs in 2024 stood at $17.1 million. It is crucial to understand that “median” signifies the midpoint of all compensation figures, meaning half of the surveyed CEOs earned more, and half earned less.
Here’s a closer look at how the various components of CEO pay evolved from 2023 to 2024:
- Base Salary: The median base salary reached $1.3 million, marking a 4% increase.
- Bonus & Performance-Based Cash Awards: These immediate cash incentives saw a modest rise of 0.8% to a median of $2.5 million.
- Perks: Executive perks, which include various non-salary benefits, experienced the most significant proportional jump, increasing by 21.5% to a median of $286,343.
- Stock Awards: A substantial driver of total compensation, median stock awards grew by 14.7% to $10.2 million.
- Option Awards: The median option award was recorded as $0. This figure highlights a trend where more than half of the analyzed companies did not grant option awards in 2024. For those that did, the average option award was valued at $1.7 million, showcasing a wide disparity in how companies utilize this form of compensation.
- Total Compensation: Aggregating these components, the median total compensation for CEOs in the S&P 500 settled at $17.1 million, reflecting the aforementioned 9.7% increase from the previous year.
This annual assessment provides critical insights into the evolving landscape of executive compensation, underscoring the mechanisms by which corporate leadership is rewarded and how those rewards tie into the broader financial health and performance of major U.S. corporations.
