Pearl Meyer Shares Executive Compensation Data from First 100 S&P 500 Proxy Filers
Notable findings include a 9.8% rise in median total compensation for CEOs
BOSTON—April 9, 2025—Executive compensation and leadership consultancy Pearl Meyer recently published a report on trends gleaned from the first 100 proxies filed by S&P 500 companies. The data show that median total compensation for CEOs rose 9.8% from $16.1 million in 2023 to $17.7 million in 2024, and that performance-based stock awards continue to be the primary vehicle for long-term incentive compensation.
“The data show boards are placing a greater emphasis on performance-based, at-risk pay for CEOs, and this is consistent with the trend we’ve been seeing in recent years,” said Matt Turner, president of executive compensation consulting at Pearl Meyer. “Short-term and long-term incentive plans are paying out at higher median percentages, yet about half of these first 100 filers did not provide an annual base salary increase, reflecting a focus on pay for performance.”
Additional Key Findings
- Median base salaries increased 4%, from $1.25 million in 2023 to $1.3 million in 2024.
- The median payout for annual cash bonuses increased 13%, from $2.13 million in 2023 to $2.41 million in 2024.
- Median long-term incentive values increased 7%, from $11.72 million in 2023 to $12.49 million in 2024.
- Performance-based equity makes up 60% of the total long-term incentive mix, with 24% in restricted stock units and 16% in stock options.
- Perquisites related to executive security have increased in prevalence between 2023 and 2024.
- Incentive measures tied to various diversity-related measures have sharply decreased.
“We see in this data that boards are very attuned to market circumstances in their concern about security for highly visible executives, as well as the socio-political environment in which their companies operate,” said Turner. “Our advice for directors is to remain attuned to all of the external, environmental factors that may impact your business, but as boards develop performance-driving compensation plans, they should keep the overall business strategy as the guiding star.”