CEO Compensation Rose 11.8 Per Cent in Fiscal 2025

Canadian executives saw median pay reach $6 million as corporations relied on long-term incentives to drive growth.

Updated on Oct. 14, 2026 in Public Companies

CEO Compensation Rose 11.8 Per Cent in Fiscal 2025

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Median CEO compensation among companies on the S&P/TSX Composite Index increased by 11.8 per cent in fiscal 2025. During this period, the median total pay for executives reached approximately $6 million.

Why it matters

The increase highlights a shift in corporate compensation strategies, where boards are increasingly leveraging long-term incentive awards to manage retention and performance. This trend reflects the broader governance practices currently adopted by major Canadian firms.

In fiscal 2025, long-term incentive awards accounted for 60 per cent of total median CEO compensation. Additionally, 64 per cent of S&P/TSX Composite companies integrated at least one environmental, social, or governance metric into their incentive plans.

The players

S&P/TSX Composite Index

This is the benchmark index for the Canadian equity market, tracking the largest companies listed on the Toronto Stock Exchange.

The details

Corporate boards pushed for higher compensation by emphasizing long-term incentive structures, which now constitute the majority of executive pay packages. While most packages received support, 12 companies faced challenges after failing to secure 80 per cent approval from their shareholders.

Fiscal 2025 was the period when median CEO compensation increased by 11.8 per cent.
In 2023, the inclusion of ESG metrics in incentive plans reached a peak of 69 per cent.
The year 2022 served as the previous benchmark for a similar magnitude of CEO pay increases.

Market Landscape

The current adoption of ESG metrics in 2025 follows a pattern set by the historical peak of ESG metric inclusion at 69 per cent in 2023. This data suggests a cooling trend in how Canadian corporations integrate non-financial performance targets into executive pay compared to previous years.

For shareholders, the report highlights the growing importance of voting on executive pay packages, as some firms continue to struggle with lower approval ratings. These compensation trends may signal shifts in how companies prioritize long-term performance versus social governance targets.

The takeaway

Shareholders should remain attentive to the composition of executive pay, particularly the weighting of long-term incentives versus performance-based metrics. Monitoring these disclosure reports can provide critical insight into how corporate leadership aligns its interests with long-term investors.