Record CEO Pay Soars Amid Stock Awards Surge

Median pay for top U.S. CEOs reached a record $16.8 million in 2024, a 7.5% increase driven by substantial stock awards. Despite global market uncertainties, companies maintain lucrative compensation packages. Axon CEO Patrick Smith received $164.5 million, highlighting the disconnect between executive earnings and regular worker wage increases.

A new study has identified a notable increase in compensation among leading U.S. CEOs, with median pay climbing 7.5% to a record $16.8 million for 2024. This surge is largely attributed to significant stock awards that have augmented executive earnings far beyond those of average American workers.

Executives from Axon and Union Pacific are among those experiencing substantial pay hikes due to stock incentives, according to an ISS-Corporate review of S&P 500 CEO salaries. The assessment, led by Roy Saliba, highlighted that targets were set during more stable 2023 conditions, prior to current market disruptions initiated by President Trump's trade policies.

Despite burgeoning global uncertainties, companies are being advised to delay alterations to compensation structures. Saliba's findings reveal that the 320 S&P 500 companies studied saw a median total shareholder return of 15.1% for 2024, significantly benefiting executive compensation.

(With inputs from agencies.)