Top US CEOs Raise Compensation by 6% in 2025 as Pay Ratios Widen
A survey of S&P 500 companies reveals CEO compensation rose nearly 6% to $17.7 million in 2025, with half of companies still maintaining pay ratios where workers need 200 years to earn what CEOs make annually.
What happened
A new survey from Equilar, analyzing proxy statements filed between January 1 and April 30, 2026, reveals that CEO compensation at S&P 500 companies rose by nearly 6% in 2025. The data covers 337 executives who served at least two full consecutive fiscal years across major U.S. corporations.
The typical CEO compensation package reached $17.7 million in 2025, marking a significant increase from the previous year. This represents one of the largest annual increases in recent memory for top corporate executives.
Perhaps most concerning is the widening pay gap between CEOs and their employees. The survey found that at half of the companies surveyed, the pay ratio stands at 200 years — meaning a worker at the middle pay scale would need to work 200 years to earn what a CEO makes in one year. This represents an increase from 192 years in the previous year, indicating that compensation growth is outpacing wage growth for most employees.
The data comes from Associated Press reporting on Equilar's analysis of executive compensation filings, which are required disclosures under SEC regulations. The survey period covered proxy statements filed between January 1 and April 30, 2026, providing a comprehensive snapshot of the year's compensation trends.
Why it matters
The 6% increase in CEO pay comes at a time when many American workers have faced stagnant wage growth and rising cost of living. The typical worker's annual compensation has not kept pace with executive pay increases, contributing to growing income inequality at the corporate level.
The widening pay ratio — now standing at 200 years for half of surveyed companies — underscores a structural issue in modern corporate governance. While some argue that higher CEO compensation reflects increased responsibility and market conditions, the data suggests that pay growth is not necessarily tied to company performance or productivity gains for the broader workforce.
This trend has implications for:
- Corporate governance: The disconnect between executive and employee compensation raises questions about board oversight and shareholder interests
- Talent retention: Companies may face challenges attracting top talent if they cannot offer competitive packages relative to industry peers
- Public perception: Continued widening of pay gaps could fuel political pressure for executive pay reform or increased transparency requirements
The survey's focus on executives who served at least two full consecutive fiscal years provides a more stable picture than single-year data, which can be skewed by one-time bonuses or stock awards. This methodology helps identify sustained compensation trends rather than anomalous spikes.
What to watch
Several factors will shape executive compensation trends in the coming months:
- Shareholder activism: Institutional investors are increasingly scrutinizing executive pay packages and may push for more performance-based compensation structures
- Regulatory pressure: The SEC and other regulators could introduce new disclosure requirements or caps on executive compensation ratios
- Market conditions: As economic uncertainty persists, companies may reconsider their approach to executive pay in light of broader workforce concerns
- Union negotiations: Labor unions are increasingly targeting executive compensation as part of broader worker rights campaigns
The Equilar survey methodology and data collection will continue to provide important insights into how corporate America approaches executive compensation in an era of economic uncertainty and growing income inequality.
By the numbers
Source snapshot
Sources
- Associated Press: See how your pay compares to the CEOs of the top US companies