In 2024, some of the biggest names in the corporate world took home massive pay packages. According to Equilar, Rick Smith of Axon Enterprises, the highest-paid CEO among large U.S. public companies made around $164.5 million in total compensation in 2024.
According to a report by the Economic Policy Institute (EPI), the average CEO pay at major U.S. companies reached $22.98 million in 2024. That’s a 6% jump from the year before and an unbelievable 1,094% increase since 1978, when the average CEO made only about $1.9 million. In simple terms CEO pay has gone up more than ten times in just a few decades. Worker wages haven’t even come close.
Key Takeaways
- Together, the top 10 CEOs in the United States made around $885 million in 2024 — almost a billion dollars.
- CEO pay has skyrocketed over the decades, growing more than 1,000% since the 1970s.
- Most of a CEO’s income now comes from stock awards, meaning their earnings often depend more on stock market performance than company results.
The Highest-Paid CEOs in the United States
The following table shows the America’s top 10 highest-paid CEOs in 2024, based on Equilar’s study of large U.S. companies with over $1 billion in annual revenue.
| Rank | CEO | Company | Total Compensation |
|---|---|---|---|
| 1 | Rick Smith | Axon Enterprise | $164,525,721 |
| 2 | Jim Anderson | Coherent | $101,497,009 |
| 3 | Brian Niccol | Starbucks | $95,801,676 |
| 4 | Larry Culp | GE Aerospace | $87,393,875 |
| 5 | Michael Arougheti | Ares Management | $85,381,842 |
| 6 | Satya Nadella | Microsoft | $79,106,183 |
| 7 | Tim Cook | Apple | $74,609,802 |
| 8 | Greg Lehmkuhl | Lineage | $69,341,442 |
| 9 | David Gitlin | Carrier Global | $65,554,845 |
| 10 | Ted Sarandos | Netflix | $61,922,397 |
Source: Equilar, Economic Policy Institute, CNBC
According to Equilar’s methodology, a CEO’s compensation package is calculated as the sum of base salary, annual cash bonus, the grant-date value of stock and option awards, and other perks.
How CEOs Actually Get Paid
The numbers like $100 million, sounds like CEOs are receiving huge checks every month — but that’s not really the case. A CEO’s pay usually has four main parts:
1. Base Salary
This is the CEO’s regular yearly paycheck — a fixed amount they get no matter how the company performs. For most big companies, it’s usually between $1 million and $3 million. It’s the smallest part of their total pay but still a big amount compared to what most employees earn.
2. Bonuses
Bonuses are extra cash rewards that depend on how well the company does in a given year. If profits, sales, or stock prices rise, the CEO gets a big bonus. If the company doesn’t perform well, the bonus might shrink or disappear.
3. Stock and Options
This is the largest and most powerful part of CEO pay. Instead of cash, CEOs often get company shares or the right to buy shares later at a fixed (usually lower) price. When the company’s stock value increases, those shares can be worth millions of dollars. This system is meant to motivate CEOs to help grow the company’s value.
4. Other Perks
On top of all that, many CEOs get extra benefits like retirement plans, private jets, personal bodyguards, and special insurance. These perks may not be cash, but they add up to a very comfortable lifestyle.
So, Most of a CEO’s “pay” isn’t cash. It’s the estimated value of stocks and bonuses, which may grow (or shrink) over time depending on how the company performs.
Median Weekly Earnings by Educational Attainment in the United States 2025
From Millions to Hundreds of Millions: The Soaring Pay of America’s Top CEOs
In the past few decades, CEO pay in the U.S. has exploded. Back in 1978, the average CEO at a large company earned about $1.9 million a year. In 2024 that number has jumped to nearly $23 million. That’s an increase of more than 1,000% — far more than what the average worker’s salary has grown in the same time.
To see how much the gap has widened, consider this: in the late 1960s, the typical CEO made about 20 times more than the average employee. Today, that difference has soared to roughly 344 times more. This huge jump in executive pay compared to regular wages shows just how much income inequality has grown in America over the years.
Why Has CEO Pay Risen So Much?
There are a few major reasons why CEO pay keeps climbing higher every year:
- The Stock Market Boom
Most CEO pay is tied to company shares. When stock markets go up, those shares become worth more — and their “pay” increases automatically. - Huge Stock Grants
Many companies give CEOs “mega grants” of stock that can be worth hundreds of millions — meant to keep them leading the company for years. - Pay Linked to Performance
Companies often say CEO pay is tied to results — like profits or growth. But in reality, even moderate success can trigger massive bonuses.
Conclusion
Top company leaders like Rick Smith of Axon, Tim Cook of Apple, and Satya Nadella of Microsoft earned huge pay packages, sometimes reaching tens or even hundreds of millions of dollars. Most of this money didn’t come from their regular salaries, but from stock-based compensation.
Over the past few decades, executive pay has grown more than 1,000% since the 1970s, while average worker wages have barely increased after adjusting for inflation. In other words, CEO pay keeps climbing higher, but the typical employee’s paycheck has stayed almost flat. This growing gap shows how uneven the rewards of economic growth have become in modern America.
