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CEO Compensation Packages Surge 9.7% to $17.1 Million in 2024

Strategic Insights

— 2 min read

A new AP survey reveals that top executives at S&P 500 companies have seen their compensation packages skyrocket to $17.1 million, a 9.7% increase from the previous year. This surge in pay comes despite a challenging economic environment, where CEOs had to navigate sticky inflation, high interest rates, and declining consumer confidence. However, the stock market's strong performance and improved corporate profits have contributed to the rise in CEO compensation. The median employee at companies in the survey earned $85,419, reflecting a 1.7% increase year over year.

Key Takeaways:

  • The median pay package for CEOs rose to $17.1 million, up 9.7%, while the median employee earned $85,419, reflecting a 1.7% increase year over year.
  • The stock market's main benchmark, the S&P 500, rose more than 23% last year, and profits for companies in the index rose more than 9%.
  • CEO pay packages have become more closely tied to performance, with a large proportion consisting of stock awards that can only be received if the company meets certain targets.
  • The pay gap between CEOs and median workers has widened, with some CEOs earning over 1,000 times what a median worker does.
  • Female CEOs saw a 10.7% increase in median pay to $20 million, while a notable number of well-known billionaire CEOs are low in the AP survey.
  • Companies are increasingly offering security perquisites as part of executive compensation packages, with the median spending on security rising to $94,276.
  • The average worker in the U.S. makes $65,460 a year, while wages and benefits netted by private-sector workers in the U.S. rose 3.6% through 2024.

Statistics:

  • The median pay package for CEOs is $17.1 million, representing a 9.7% increase from the previous year.
  • The stock market's main benchmark, the S&P 500, rose 23.1% last year.
  • Profits for companies in the index rose 9.2% in 2024.
  • The median employee at companies in the survey earned $85,419, reflecting a 1.7% increase year over year.
  • Wages and benefits netted by private-sector workers in the U.S. rose 3.6% through 2024.
  • The average worker in the U.S. makes $65,460 a year.
  • The pay gap between CEOs and median workers is significant, with some CEOs earning over 1,000 times what a median worker does.

Sources:

  • The Associated Press' CEO compensation survey, which uses data analyzed for The AP by Equilar
  • Compensation Advisory Partners
  • Institute for Policy Studies
  • Labor Department
  • Morningstar Sustainalytics
  • Equilar
  • Utah State University
  • Carnival Corp.
  • McDonald's

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