In 2023, the median pay for S&P 500 CEOs hit a record $15.7 million, driven by a booming stock market. Some CEOs raked in nine-figure packages, with Hock Tan of Broadcom topping the list at $161.8 million, a whopping 510 times his median employee’s pay. This surge in executive compensation has doubled over the past decade, highlighting a growing pay gap as CEOs earn 196 times more than the average worker. Most of this massive pay comes from stock awards, reflecting the high stakes and rewards at the top of the corporate ladder.
In 2023, the median pay for S&P 500 CEOs reached an all-time high of $15.7 million, driven by a booming stock market.
Some of America’s highest-paid CEOs received nine-figure pay packages, with the great majority of CEO compensation based on stock awards. Overall, the index’s leaders earned 196 times more than the usual S&P 500 employee, up from 185 in 2022.
Based on research from The Wall Street Journal and MyLogIQ, this image by Visual Capitalist depicts the top ten highest-paid CEOs of S&P 500 businesses.
The Highest-Earning S&P 500 CEOs in 2023
Here are the S&P 500 CEOs who received the largest pay packages last year:
Hock Tan, CEO of chipmaker Broadcom, is at the top of the list, earning $161.8 million in 2023.
Like Nvidia, the business has profited from increased demand for AI technologies. Broadcom provides networking chips used in data centers for major technology businesses such as Microsoft. Tan’s compensation doubled between 2022 and 2023, to 510 times the staff median pay.
Stephen Schwarzman, the CEO of Blackstone, the world’s largest private equity firm, ranks third. The executive’s $119.8 million compensation package was boosted by an 83% increase in the company’s share price last year. The company is the world’s largest owner of commercial property, with roughly 12,500 real estate holdings in total.
Meanwhile, Apple CEO Tim Cook made $63.2 million in 2023, a significant decrease from the $99.4 million earned the previous year. This unusual compensation drop was the consequence of shareholder backlash and Cook’s requests.
Overall, four of the top ten highest-paid CEOs in America are in the technology sector, with each seeing double-digit share price increases by 2023.
CEO Pay Has Doubled Over the Last Decade
Since 2013, the amount of CEO earnings has increased, as shown below:
As we can see, the median total compensation of S&P 500 CEOs increased by more than 8% between 2022 and 2023.
Furthermore, this ratio has increased by double over the last decade as the US stock market boomed amid a period of low interest rates. Overall, CEO pay is rising faster than median employee pay, and the gap between CEOs and workers has grown over the years. In 2023, the median compensation for S&P 500 employees was $81,476.
CEO compensation is frequently tied to the company’s financial performance, which is evaluated by share price fluctuations and dividend payouts. Furthermore, the increase in CEO remuneration may be attributed in significant part to stock awards made to CEOs.
Equilar discovered that stock awards accounted for 70% of S&P 500 CEO salary, averaging $9.4 million in 2023.
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