Full Breakdown
CEO Compensation Peaks in 2025: A Deep Dive into Pay Gaps and Corporate Incentives
5/28/2026, 11:30:25 PM
2025 CEO Pay Surge
The AP survey, using Equilar data for 337 S&P 500 CEOs who filed proxy statements Jan. 1–Apr. 30, shows median CEO compensation rose 5.9% to $17.7 million in 2025. Boards cited higher profits and stock gains and stressed retention incentives tied to future performance.
Historical Context and Pay-Ratio Disclosure
Since 2018, firms must disclose the median employee-to-CEO pay ratio. The AP data show that at half of the surveyed companies a median worker would need 200 years of earnings to match a CEO’s single year, up from 192 years in 2024, with the widest gaps in low-wage sectors.
Key Numbers from the Survey
Median employee pay at S&P 500 firms hit $89,744, a 4.7% rise outpacing inflation. Private-sector wages grew 3.4% in 2025; total compensation for the average U.S. worker (including benefits) was $67,000. “Say-on-pay” votes approved plans at roughly 90% of firms. Coca-Cola’s CEO earned about 1,739 times the median $17,947, and TJX Cos.’ CEO about 1,774 times.
Notable Executive Packages
Tesla’s Elon Musk retained a $132.3 billion stock-award tied to market milestones. Welltower’s Shankh Mitra earned $821.1 million, payable after a decade. Broadcom’s Hock Tan secured a $205 million package linked to AI growth. Warner Bros. CEO David Zaslav received $165 million for a $31-per-share sale to Paramount Skydance. Citigroup’s Jane Fraser earned $95.8 million, the highest ever for a woman CEO.
Criticism from Labor Advocates
Sarah Anderson, director of the Global Economy Project at the Institute for Policy Studies, called the widening gap “obscene” amid household costs. She noted ballot-initiative campaigns in San Francisco and Los Angeles seeking higher taxes on firms with extreme CEO-worker pay gaps.
Corporate Governance Responses
Boards claim packages align incentives with shareholder value, noting roughly nine-in-ten shareholders approved them in “say-on-pay” votes. Executives say stock awards tie pay to long-term performance.
Verbatim Quotes
- “At a time when working families are struggling with rising costs, it’s obscene to see CEO pay continuing to skyrocket,” — Sarah Anderson, Director, Global Economy Project, Institute for Policy Studies
- “Use of AI considerations or metrics in incentive plans has not yet taken hold as a majority practice,” — Kelly Malafis, Founding Partner, Compensation Advisory Partners
- “The pay gap At half the companies in AP’s survey it would take the worker at the middle of the company’s pay scale 200 years to make what the CEO did in one, up from 192 years in last year's survey.” — Associated Press, CEO Compensation Survey
Conflicts & Outlook
Conflicting Reports & Gaps
The survey lists median employee pay as $89,744, yet elsewhere the average U.S. worker’s total compensation is $67,000. A report also cites male CEO compensation rising to $17.7 billion, likely a typo for million.
What’s Next
Local officials in San Francisco and Los Angeles are drafting ballot measures to raise taxes on firms with large CEO-to-median-worker pay gaps.
