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 inspired by Elon Musk's compensation are driving the increase.
- The AFL-CIO conducted a study on CEO compensation.
- Norway's sovereign wealth fund has $2.3 trillion in assets.
- The fund is concerned about the erosion of shareholder rights globally.
- Dual-share classes are cited as a concern for shareholder rights.
- Voluntary reporting requirements are also a concern for shareholder rights.
- These practices favor founders and insiders over independent investors.
Average CEO compensation for S&P 500 companies hit a new record of $22.8 million in 2025, representing a 21% increase from the previous year. This significant rise is attributed to the adoption of mega-pay plans that are reportedly inspired by the compensation structures seen with Elon Musk. The AFL-CIO study highlights that this trend is contributing to a widening gap between CEO pay and that of average workers.
In parallel, Norway's sovereign wealth fund, one of the world's largest with assets totaling $2.3 trillion, has issued a warning regarding a steady erosion of shareholder rights across the globe. The fund's concerns are directed at corporate governance practices that increasingly favor founders and company insiders. Specific examples cited include the implementation of dual-share classes, which grant disproportionate voting power to certain individuals, and the reliance on voluntary reporting requirements that can obscure crucial information from independent investors.
The AFL-CIO study's findings underscore a growing disparity in executive compensation, with record highs for CEOs potentially exacerbating income inequality. The inspiration drawn from Elon Musk's compensation packages suggests a trend towards more performance-based, but potentially massive, executive rewards. Simultaneously, the Norway wealth fund's critique points to systemic issues in corporate governance that may undermine the principles of fair and equitable treatment for all shareholders, impacting the fundamental rights of those who invest in public companies.