S&P 500 CEOs’ Reported Compensation: 2021-2024
CEO Compensation generates considerable interest not only from Compensation Committees but also from investors, the press, and politicians. It can be confusing and controversial. This Meridian Insight considers CEO pay among S&P 500 companies and changes in value between 2020 and 2023 based on proxy statements filed in 2021-2024. Executive Summary Key Takeaways: Median total […]
Edward Hauder is a Principal and Head of Research & Content and Frank Carris is a Consultant at Meridian Compensation Partners. This post is based on their Meridian Compensation Partners memorandum.
CEO Compensation generates considerable interest not only from Compensation Committees but also from investors, the press, and politicians. It can be confusing and controversial. This Meridian Insight considers CEO pay among S&P 500 companies and changes in value between 2020 and 2023 based on proxy statements filed in 2021-2024.
Executive Summary
Key Takeaways:
Median total compensation in 2023 was $15M
- The median compound growth rate of CEO total compensation dropped from 5.4% prior to 2021 to 2.8% since 2021 with the pandemic decreasing pay outcomes. CEO pay grew only modestly above inflation levels over this period.
Pay growth was volatile, more “saw-toothed”
- Compensation fell for many in 2020 due to profound economic downturn, rose in 2021, fell again in 2022 and then increased in 2023.
Overwhelming majority of CEO pay is delivered in long-term incentives (LTI)
- Salaries grew more slowly at ~3% annually while grant values of LTI grew 7%-8% annually; since LTI is reported at its grant date value, realized values can be higher or lower than reported.
Newer CEOs (much like other roles) earn less than experienced CEOs
- Total compensation for CEOs hired in 2021-2022 vs. those hired in 2020 dropped, suggesting higher compensation was required to attract a new CEO at the height of the pandemic than in later years
