Key facts
- Average S&P 500 CEO compensation reached a record $22.8 million in 2025, a 21% increase from the prior year.
- Elon Musk's compensation at Tesla was a major factor, with his pay exceeding the average worker's by over 2.5 million times.
- The CEO-to-worker pay ratio at S&P 500 companies was 312:1 excluding Musk, and 5,387:1 including him.
- The AFL-CIO report noted that workers' share of U.S. national income has fallen to its lowest level since World War II.
- Shareholder support for 'say on pay' votes averaged 90.6% for S&P 500 companies, though some individual CEOs received lower support.
Average compensation for chief executives in the S&P 500 surged 21% to a record $22.8 million in 2025, excluding Elon Musk's pay, according to a study by the AFL-CIO. This figure is the highest recorded since the AFL-CIO began tracking CEO pay in the 1990s. Labor officials attribute this rise to an increasing number of large-scale pay plans modeled after Musk's compensation deal at Tesla, which could be worth up to $1 trillion if all targets are met. Including Musk's Tesla compensation, the average S&P 500 CEO pay reached $340.1 million last year.
The widening pay gap between CEOs and workers is fueling anger among labor unions. Fred Redmond, the AFL-CIO's secretary-treasurer, noted that employee wages are being suppressed. The average ratio of CEO-to-worker pay at S&P 500 companies rose to 312:1 in 2025, excluding Musk's compensation, up from 285:1 in 2024. When Musk's Tesla compensation is included, the ratio reached 5,387 to 1 last year.
Corporate compensation committees often defend their pay plans by arguing they are tied to shareholder value and incentivize executive performance, pointing to investor support. Average support for advisory 'say on pay' votes at S&P 500 companies stood at 90.6% through late June. However, special pay awards are a contentious issue. Goldman Sachs CEO David Solomon received $118.9 million in 2025, including a major retention award, but only 71% of shares cast supported his pay. Welltower CEO Shankh Mitra was paid $821 million, intended to cover most of his pay over the next decade, but received only 19% shareholder support.