Median pay for CEOs rose nearly 6% in 2025, but some compensation packages were eye-popping
AP, using Equilar data from 337 S&P 500 CEOs with at least two consecutive fiscal years, reports median CEO pay rose nearly 6% in 2025 to $17.7 million. The median worker earned $89,744 (+4.7%). Pay gaps widened: at half the firms, it took 200 years for a median worker to earn what a CEO made.

Primarily a governance/ESG optics story; it may affect investor sentiment around pay practices rather than near-term fundamentals.
The article cites Coca-Cola’s CEO pay as nearly 1,739x the median worker pay, highlighting governance scrutiny tied to compensation structure.
Low likelihood of immediate price move; any impact would be gradual via shareholder activism or voting outcomes.
Background
AP’s CEO compensation survey uses Equilar-analyzed proxy data for 337 S&P 500 executives with at least two consecutive fiscal years, focusing on pay ratios and incentive structures.
Why it matters
The article is largely descriptive of compensation levels and structures (stock awards, performance targets) and highlights public criticism; it does not report new company-specific operational or regulatory developments.
Market relevance
For trading, this is mostly governance/ESG sentiment context; without new earnings, guidance, or regulatory actions, it’s unlikely to drive large price moves.
Market effects
Broad read-across to large-cap governance/ESG sentiment; could modestly influence how investors discount executive incentive structures across S&P 500.
Primarily US-focused (S&P 500 pay-ratio disclosures and US ballot initiatives mentioned).
Limited; compensation optics may matter for multinational investors but no cross-border operational catalyst is described.
Alternative perspectives
Because “say on pay” votes pass overwhelmingly (~90% average yes), the market may treat pay-ratio headlines as noise rather than a driver of valuation.
Potential second-order effects (proxy vote outcomes, activist campaigns, or future compensation redesign) are not quantified here, so near-term trading signals are likely weak.
Key entities
- surveyAP (Associated Press) CEO compensation survey
Uses Equilar-analyzed proxy data to summarize CEO pay growth, pay ratios, and notable incentive packages.
- data_providerEquilar
Analyzes proxy statement data used in the AP CEO compensation survey.
- advocacy_groupInstitute for Policy Studies (Global Economy Project)
Comments that CEO pay gaps are obscene amid rising costs and ballot initiatives to raise taxes.


