S&P 500 CEO Pay Hits Record High as Musk’s Pay Deal Sets New Benchmark

Compensation for chief executives at S&P 500 companies climbed sharply last year, with average pay reaching $22.8 million even when excluding Tesla and SpaceX chief Elon Musk. That marks a 21% increase and the highest figure recorded since the AFL-CIO began tracking CEO pay in the 1990s. The labor federation’s yearly Paywatch report points to Musk’s massive compensation package as a key reason other boards are approving bigger payouts.

Musk’s Pay Package Reshapes the Landscape

Tesla shareholders approved a restricted stock plan for Musk valued at $158 billion, with the potential to grow to $1 trillion if performance targets are met. When this package is factored in, average CEO pay across the S&P 500 rises to $340.1 million. AFL-CIO secretary-treasurer Fred Redmond said Musk’s deal has become a reference point boards use when structuring their own executive pay plans.

Worker Pay Ratio Widens

The CEO-to-worker pay ratio climbed to 312:1 in 2025, up from 285:1 the year before, excluding Musk. Including his Tesla compensation, that ratio jumps to 5,387:1. By comparison, average annual wages for U.S. workers stood at $69,770 as of May 2025, a 3% increase from the previous year.

Shareholder Votes Show Mixed Support

Average support for advisory “say on pay” votes at S&P 500 firms stood at 90.6% through late June, slightly higher than 2025’s full-year average of 89.4%, according to compensation consulting firm Semler Brossy.

However, special one-time pay awards often draw more scrutiny. Goldman Sachs paid CEO David Solomon $118.9 million last year, including a large retention award, which received 71% shareholder support. Real estate firm Welltower awarded CEO Shankh Mitra $821 million meant to cover roughly a decade of pay, but only 19% of shares cast backed the deal.