S&P 500 companies' CEO compensation reached a record $18.2 million in 2025, driven by leadership talent shortages and investor scrutiny, according to Diligent Market Intelligence.
Key points
•S&P 500 CEO compensation record
•New CEO sign-on bonuses surge
•Increased transition costs due to talent scarcity
Median CEO pay at S&P 500 firms rose over 8% to $18.2 million in 2025, while sign-on bonuses for new CEOs hit a six-year high of $3.7 million on average, Diligent Market Intelligence reported.
This growth reflects the scarcity of leadership talent and increased CEO transition costs, with nearly 40 S&P 500 CEOs leaving by June 2026, up 29% since 2023. Boards are increasingly viewing CEOs as a scarce global talent pool.
While Europe is closing the gap in compensation, U.K. FTSE 100 CEO pay grew 16%, and France’s CAC 40 saw a nearly 14% increase to $6.8 million euros. The SEC's proposed changes could further heighten investor scrutiny on executive pay.