Median CEO Pay Reaches Record $16.8 Million Amid Stock Awards

Median pay for top U.S. CEOs rose 7.5% to a record $16.8 million for 2024, driven primarily by substantial increases in stock and option awards rather than base salaries. Over two-thirds of S&P 500 CEOs received pay increases, with the median rise at 13.2%, while the remaining saw decreases. The surge in executive compensation outpaced the earnings growth of average American workers, whose wages rose only 4% last year. The pay hikes were largely set during a stable market period in 2023, preceding recent market turbulence and economic uncertainty. Higher CEO pay was generally correlated with stronger shareholder returns, with companies that increased CEO compensation reporting a median shareholder return of 16.8%. Despite ongoing global trade tensions and fears of recession, companies are being advised to delay compensation plan changes until market conditions stabilize.