CEO Pay Surges to $17.7 Million Average in 2025, Worker-to-Boss Ratio Hits 200 Years for Half of Companies
AP's 2025 CEO compensation survey reveals average pay reached $17.7 million, a 6% increase, with the worker-to-CEO pay ratio hitting 200 years for half of S&P 500 companies surveyed.
What Happened
The Associated Press released its annual CEO compensation survey on May 27, 2026 at 8:02 AM EDT, revealing a significant increase in executive pay at America's largest companies. The data, analyzed by Equilar and based on proxy statements filed between January 1 and April 30, 2026, shows that CEO compensation increased by nearly 6% in 2025 compared to the previous year.
The survey covered 337 executives who served at least two full consecutive fiscal years at their companies, all drawn from S&P 500 companies — representing the largest publicly traded firms in the United States. The typical CEO compensation package now stands at $17.7 million annually.
Perhaps most striking is the widening gap between executive and worker pay. For half of the companies surveyed, a middle-income worker would need to work 200 years to earn what one CEO earns in a single year — up from 192 years in the previous year. This represents a deterioration in the worker-to-CEO pay ratio for half of America's largest publicly traded companies.
Why It Matters
The 6% increase in CEO compensation comes at a time when many American workers are still grappling with inflation and stagnant wage growth. The data reveals a continuing trend where executive pay continues to outpace productivity gains and worker compensation, raising questions about corporate governance and the alignment of executive incentives with broader economic performance.
The widening pay gap — now reaching 200 years for half of companies — underscores structural issues in how compensation is set at major corporations. When CEO pay increases by 6% while typical workers see modest or negative real wage growth, it suggests that compensation decisions may be driven more by peer comparisons and market forces than by company performance or worker productivity.
The survey's methodology — requiring executives to have served at least two full consecutive fiscal years — ensures that the figures reflect sustained compensation packages rather than one-time bonuses or short-term arrangements. This provides a clearer picture of structural pay levels rather than anomalous cases.
What to Watch
Several factors will determine whether this trend continues or reverses in coming years:
-
Corporate governance reforms: Shareholders may push for greater alignment between executive and worker compensation, potentially through binding votes on executive pay packages.
-
Regulatory scrutiny: The SEC and other regulators have increased focus on executive compensation disclosure and justification, which could lead to more stringent requirements.
-
Market performance correlation: Investors will continue to examine whether CEO pay increases correlate with actual company value creation or shareholder returns.
-
Worker compensation trends: Any meaningful improvements in middle-income wage growth could alter the political and social pressure around executive compensation levels.
-
ESG investing pressures: Environmental, social, and governance-focused investors may increasingly factor executive pay ratios into their investment decisions.
The Associated Press's annual survey provides critical transparency on these dynamics, allowing stakeholders to track whether corporate America is addressing concerns about excessive executive compensation or if the trend toward widening pay gaps continues unabated.
By the numbers
Source snapshot
Sources: - https://apnews.com/article/see-how-your-pay-compares-to-the-ceos-of-the-top-us-companies-0000019e3fbada77a59e7fbffcd20000 - https://apnews.com/business