Key facts
- Average CEO compensation for S&P 500 companies reached $22.8 million in 2025.
- CEO compensation saw a 21% increase in 2025.
- Mega-pay plans modeled after Elon Musk's Tesla compensation are driving the increase.
- The CEO-to-worker pay gap has widened significantly.
- The data pertains to S&P 500 companies.
The average compensation for CEOs of S&P 500 companies reached an all-time high of $22.8 million in 2025. This figure represents a substantial 21% increase compared to the previous year's compensation levels. A primary driver behind this record-setting executive pay is the adoption of mega-pay plans that are modeled after the compensation structure of Elon Musk at Tesla. The report highlights that this trend has led to a significant widening of the CEO-to-worker pay gap. Specific details regarding the exact nature of these Musk-inspired plans or the precise figures contributing to the 21% increase were not detailed, but the overall trend indicates a substantial rise in top executive earnings across major U.S. corporations.