CEO Compensation Soars Amidst Market Growth
In 2024, CEO compensation for S&P 500 companies surged by nearly 10% as stock markets thrived and corporate profits jumped. Stock awards now form a significant part of CEO pay packages, linking compensation to company performance. The median CEO pay reached USD 17.1 million while forms of employee compensation saw a modest rise. Increased security perks were also noted in executive compensation packages.
In 2024, the compensation packages for chief executives heading companies listed on the S&P 500 experienced a significant surge, rising by nearly 10%. This increase coincided with a robust stock market performance and a notable rise in corporate profits. Many corporations have increasingly linked CEO compensation to company performance, with stock awards constituting a substantial portion of these pay packages.
The Associated Press' survey, analyzing 344 executives, revealed that the median CEO pay rose to USD 17.1 million, marking a 9.7% increase. Despite challenges such as inflation and high-interest rates, the economy provided some support, benefiting consumer spending and the job market. However, the median employee income saw only a modest rise of 1.7% to USD 85,419.
Top earners like Rick Smith of Axon Enterprises received pay packages largely composed of stock awards, valued at USD 164.5 million. Meanwhile, female CEOs saw a 10.7% increase in median pay to USD 20 million. Additionally, more companies offered security perks in executive compensation, with median security spending rising to USD 94,276.
(With inputs from agencies.)
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