CEO Compensation Rose to $18.23 Million by 2025
Rising executive pay and sign-on bonuses occurred alongside a 29% increase in CEO turnover across the country.
Updated on Oct. 1, 2026 in Public Companies
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Median compensation for CEOs at S&P 500 companies climbed to $18.23 million by 2025, up from $15.68 million in 2023. This growth was fueled by competitive pressures to secure leadership for managing complex global risks.
Why it matters
The upward trend in executive pay reflects a intensifying battle for leadership talent capable of navigating supply chains, tariffs, and AI development. These compensation increases occurred as shareholders saw strong total returns, maintaining high levels of support for board committees.
Median CEO pay at Russell 3000 firms grew to $7.44 million in 2025 from $6.51 million in 2023. Additionally, average sign-on bonuses for S&P 500 executives jumped to $3.7 million, up from $2.4 million two years prior.
The players
Securities and Exchange Commission
This federal agency is responsible for overseeing securities markets and has proposed eliminating advisory say-on-pay votes for roughly 80% of listed companies.
Procore Technologies
This is a public company where 37% of shareholders voted against the CEO's inducement award as part of recent governance activity.
The details
Corporate boards have increasingly deployed substantial sign-on bonuses to attract and retain leaders capable of managing significant operational risks. Despite these rising costs, compensation committees maintained 95% average investor support during the first half of 2026, though specific controversies persist, such as the 37% of Procore Technologies shareholders who voted against an inducement award.
Timeline
2023 served as the baseline year for executive compensation and turnover metrics.
2025 marked the end of the reporting period for compensation and bonus data.
Compensation committees achieved 95% investor support during the first half of 2026.
Market Landscape
The SEC's proposal to eliminate say-on-pay votes for 80% of listed companies represents a significant potential rollback of the transparency requirements established by the Dodd-Frank Wall Street Reform and Consumer Protection Act's say-on-pay provisions. This shift suggests a move toward reduced mandatory oversight, forcing shareholders to find new methods for challenging board pay committees.
Average shoppers and investors may see these rising compensation packages reflected in corporate proxy statements and board governance disclosures. Shareholders should anticipate potential changes in their ability to voice opposition if the SEC's proposal to limit advisory votes is finalized.
The takeaway
The trend of escalating executive pay underscores the high cost of talent in an increasingly complex and high-risk regulatory environment. Investors remain generally supportive of these costs, but the potential removal of advisory votes could significantly alter future board accountability.
Further reading
For broader trends regarding corporate leadership and governance, visit the Public Companies section.
Source note: This article includes information reported by Corporate Compliance Insights.
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