What is the average salary of the S&P 500 CEO?
The average total compensation for an S&P 500 CEO was $17.7 million in 2023.
Understanding S&P 500 CEO Compensation
This figure represents the average total compensation package for chief executive officers at companies listed on the S&P 500 Index. It's important to note that this is not just a base salary, but rather a comprehensive sum that includes various components:
- Base Salary: A fixed annual amount.
- Cash Bonuses: Performance-based incentives.
- Stock Awards: Equity grants that tie compensation to company performance and stock value.
- Option Awards: The right to buy company stock at a predetermined price.
- Non-Equity Incentive Plan Compensation: Payments based on achieving specific financial or operational goals.
- Other Compensation: Benefits, perks, and deferred compensation.
Key Compensation Trends
In 2023, the average S&P 500 CEO compensation saw a significant increase, rising by 6% compared to the previous year. This growth highlights the continuous upward trend in executive pay.
CEO-to-Worker Pay Ratio
The substantial compensation of S&P 500 CEOs stands in stark contrast to the average worker's pay. In 2023, the average CEO-to-worker pay ratio for S&P 500 companies was an astonishing 268-to-1. This means that, on average, a CEO earned 268 times more than the typical worker at their company.
This significant disparity often fuels discussions around economic inequality and fair compensation practices within large corporations. The table below summarizes the key figures:
| Metric | Value (2023) | Description |
|---|---|---|
| Average CEO Total Compensation | $17.7 million | Includes salary, bonuses, stock awards, etc. |
| Year-over-Year Increase | 6% | Growth in average CEO pay from the previous year. |
| CEO-to-Worker Pay Ratio | 268-to-1 | How many times more a CEO earns than a typical worker. |
This data underscores the growing financial gap between top executives and the general workforce, a trend that continues to be a subject of public and economic scrutiny.
