S&P 500 companies experienced a 10% increase in their chief executive pay packages during 2024 because of both market success and corporate profit expansion. Executive compensation continues to follow market performance closely despite increasing public attention to income inequality.
The Associated Press surveyed CEO pay through Equilar data which showed that median compensation reached $16.3 million during 2024 after starting at $14.8 million in 2023. Stock awards function as a primary driver of compensation growth because executives need their companies to achieve specific performance targets for award redemption.
The research analyzed 344 top U.S. firms at a time when multiple companies face demands to establish better connections between executive compensation and corporate performance. Boards have adapted their compensation structures to base more executive rewards on long-term business outcomes.
According to Sarah Anderson who studies CEO compensation at the Institute for Policy Studies these executive packages now depend more on performance targets but still produce substantial payment amounts.
The S&P 500 experienced its best annual increase in the last decade with a 25% rise during 2024 while executives received substantial pay increases. The combination of strong consumer demand and powerful pricing strategies enabled corporate earnings to rise despite the business challenges created by President Trump’s tariffs.
The difference between what workers earn and what CEOs earn continues to spark intense debates between corporate boards and Washington politicians. Labor groups maintain that CEO compensation exceeds typical salaries while worker pay has not kept up with inflation rates.
