CEOs have been seeing substantial pay gains over the past year, especially at the largest companies, according to a new analysis.
The study, by ISS-Corporate, analyzed CEO pay changes at S&P 500 companies with shareholder meetings on or after Jan. 1, 2026, examining 318 companies at which the CEO was in the same role for the current and previous filing years.
For these large cap companies, median CEO pay grew 10.6% from the 2025 to 2026 filing periods, representing an acceleration from the 7.5 percent rise observed between the 2024 and 2025 filing periods, according to the analysis.
Median CEO pay stood at $17.7 million. Over 74% of S&P 500 CEOs in the study received a pay increase while compensation declined for the remaining 26%. For the segment of companies that increased pay for their chief executives, the median change was 15.6%, while compensation decreased by a median of 9.5% among those companies where pay dropped. Pay grew by over $10 million for 27 CEOs, and 21 CEOs actually saw their pay more than double in 2025.
The main factors behind the CEO pay growth were increases in the value of stock and option awards, as in other recent years. While the median base salary of $1.4 million reflects a relatively modest increase of 3.2% over the previous filing period, the median stock award has now reached $11 million, while the median option award (when granted) stands at $3.6 million, representing increases of 10.7% and 5.3%, respectively, over award values in the previous year.
Large cap companies generally showed robust total shareholder returns over the measurement period with a median-year TSR of 7.5 percent for the companies that were subject to the analysis (as measured at the end of the fiscal year). TSR was positive for both companies that increased pay, which had a median TSR of 9.3%, and those that lowered pay, which had a median TSR of 1.3%.
"While most companies delivered positive shareholder returns in 2025, the magnitude of CEO pay increases highlights the degree to which stock and option awards continue to drive compensation decisions," said Roy Saliba, managing director at ISS-Corporate, in a statement Monday. "In a more uncertain macro environment marked by tariff risk, geopolitical tensions, and softer growth outlooks, investors are likely to scrutinize whether elevated pay outcomes remain well-aligned with long-term performance."
On an industry level, the media and entertainment sector saw the most drastic increase in CEO compensation, with median growth of 117.4%. The consumer discretionary distribution and retail industry followed in second place, with a median increase of 29.6%. CEO compensation decreased by a median of 11.7% for companies in the consumer durables and apparel industry.
Variations at the industry level indicated the most notable disparity between median change in CEO pay and median TSR at companies in the same industries that experienced the biggest increase in pay. Companies in the media and entertainment sector had a median negative TSR of 28.6% while pay grew by 117.4%. Consumer discretionary distribution and retail companies had a median TSR of 2.3% while pay increased by 29.6%. Other poor performing industries include software and services and consumer durables and apparel, where median TSR declined 15.4% and 10.7%, respectively.
