The chief executives of America’s biggest publicly listed firms were well rewarded in 2024 amid strong market performance, but 2025 is looking less certain for high-fliers’ paychecks.
The median compensation of CEOs at large cap firms at S&P 500 companies with shareholder meetings on or after January 1, 2025, gained 7.5% from the 2024 to 2025 filing periods, based on those leaders that were in post for both years.
The analysis of 320 companies by ISS-Corporate found that this year’s rise was smaller than in the previous period (2023-2024) of 9.2%, but still saw median pay increase to $16.8 million and more than 69% of CEOs got a raise (median 13.2%) compared to 31% who saw their pay fall (median 7.2%).
But with the median base salary of a relatively modest $1.3 million having increased just 2.7%, stock awards are key and the median for 2024-2025 was $9.9 million (up 6.9%) while the median options award was $3.3 million (up 6%).
Investors may consider that the compensation was deserved, given that total shareholder returns (TSR) for the companies included gained 15.1% for one year (measured at the end of the fiscal year). But this year may be a different story, even if Goldman Sachs is giving its CEO and president $80 million retention bonuses.
“CEO pay disclosures at large US companies broadly reflect the strong market performance of last year,” said Roy Saliba, Managing Director at ISS-Corporate. “However, recent market turbulence and ensuing uncertainty around tariffs, a global trade war, and a possible looming recession could raise concerns over significant CEO pay increases at companies that may be facing headwinds in the coming months.”
Worth noting is that, while banking CEOs saw median TSR of 33.5%, the industry’s CEOs featured in the analysis saw pay rise by 9.4%; but in transportation, median TSR was down 3.6% but CEOs increased pay by a median 11.3%.
Previous insights into board member compensation also revealed some generous percentage increases, although far less than for CEOs.
Meanwhile, Cetera has welcomed a family-run practice from Commonwealth, and a Merrill advisor joins an existing UBS team in Connecticut.
The Olympia, Washington firm's retirement planning expertise reinforces the consolidator's growth momentum to exceed $160 billion in client assets.
Beyond content generation and execution, firms that can offer answers around governance, transparency, and supervision are set to pull ahead in the next leg of the AI race.
The experienced advisory teams join Ameriprise and Janney as the race for experienced talent continues.
Rising drug and outpatient costs are pushing plan members to demand more financial guidance and most insurers are falling short.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
