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CEO paychecks climb, but no one has hit $100M mark for 2024 – yet: WSJ

CEO paychecks climb, but no one has hit $100M mark for 2024 – yet: WSJ

  • 23.03.2025 17:50
  • msn.com
  • Keywords: danger, success

CEO pay has risen in 2024, with no one reaching $100 million yet. While some leaders like Starbucks' Brian Niccol ($95.8M) and Apple's Tim Cook ($74.6M) earned significant compensation, overall payouts remain high despite legal scrutiny and market volatility.

Apple NewsSBUXsentiment_satisfiedAAPLsentiment_satisfiedAVGOsentiment_satisfiedGOOGLsentiment_satisfiedEDRsentiment_satisfiedDASHsentiment_satisfiedCARRsentiment_satisfiedTSLAsentiment_dissatisfied

Estimated market influence

Starbucks

Starbucks

Positivesentiment_satisfied
Analyst rating: Buy

Brian Niccol, CEO of Starbucks, received the highest compensation so far—$95.8 million for the fiscal year ending in September.

Apple

Apple

Positivesentiment_satisfied
Analyst rating: Buy

Apple’s Tim Cook received $74.6 million in his fourth consecutive year above $50 million.

General Electric

Positivesentiment_satisfied
Analyst rating: N/A

General Electric’s Larry Culp earned $89 million, with about $50 million stemming from restricted stock tied to a new employment agreement.

Blackstone Group

Positivesentiment_satisfied
Analyst rating: N/A

Steve Schwarzman of Blackstone Group reported $84 million in compensation, much of it from performance-based carried interest, not including nearly $1 billion in dividends tied to his ownership stake.

Broadcom

Broadcom

Positivesentiment_satisfied
Analyst rating: Strong buy

Hock Tan of Broadcom was mentioned as having received nine-figure pay packages between 2020 and 2023.

Alphabet

Alphabet

Positivesentiment_satisfied
Analyst rating: Buy

Sundar Pichai of Alphabet was mentioned as having received nine-figure pay packages between 2020 and 2023.

Endeavor Group Holdings

Endeavor Group Holdings

Positivesentiment_satisfied
Analyst rating: Sell

Ari Emanuel at Endeavor Group Holdings was mentioned as having joined the ranks of high-dollar deals.

DoorDash

DoorDash

Positivesentiment_satisfied
Analyst rating: Buy

Tony Xu, CEO of DoorDash, was mentioned as having received a $414 million equity award in 2020 but has not yet met the conditions to realize it.

Carrier Global

Carrier Global

Positivesentiment_satisfied
Analyst rating: Buy

David Gitlin, CEO of Carrier Global, saw his compensation more than triple to $65.7 million, driven by a supplemental equity grant intended to retain him amid reports that rival firms were courting him.

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

Elon Musk’s $2 billion Tesla compensation package was invalidated due to governance concerns in an early 2024 court decision, leading to a decline in new $100 million pay awards.

Context

Analysis of CEO Compensation Trends in 2024

Overview

  • No CEO from a publicly traded company has reached the $100 million annual compensation mark in 2024, marking the first time in a decade without such payouts.
  • While no one hit the $100M threshold, several CEOs came close, including:
    • Brian Niccol (Starbucks): $95.8 million
    • Larry Culp (General Electric): $89 million
    • Tim Cook (Apple): $74.6 million
    • Steve Schwarzman (Blackstone Group): $84 million

Key Compensation Figures

  • Median CEO pay for S&P 500 leaders reached $16.4 million in 2024, up from $15.9 million in the previous year.
  • A growing number of CEOs earned over $20 million, while fewer fell below $10 million.

Market Trends and Business Impact

  • Executive compensation continues to trend upward overall, driven by strong corporate profits and stock market performance.
  • Equity remains the central component of most executive pay packages, often awarded as restricted shares or stock options tied to company performance.

Decline in $100M Payouts

  • The decline in $100 million+ payouts is partly due to increased regulatory scrutiny and shareholder activism.
  • A 2024 court decision invalidated Elon Musk’s $2 billion Tesla compensation package, leading to a noticeable decline in such deals.

Competitive Dynamics

  • Between 2020 and 2023, over 30 S&P 500 CEOs received nine-figure pay packages, including Hock Tan (Broadcom) and Sundar Pichai (Alphabet).
  • Smaller firms also saw high payouts, such as Ari Emanuel (Endeavor Group Holdings) and Tony Xu (DoorDash).

Strategic Considerations

  • Equity awards often come with vesting periods tied to company performance. For example:
    • Tony Xu (DoorDash) received a $414 million equity award in 2020, but has yet to meet the conditions for payout. His reported earnings in 2023 were just over $316,000.

Long-Term Effects and Regulatory Impacts

  • The shift away from $100M+ payouts may reflect broader changes in corporate governance and shareholder expectations.
  • Companies are increasingly tying executive compensation to long-term performance metrics, with a focus on retention through equity incentives.

Conclusion

The 2024 CEO compensation landscape reflects a mix of upward trends and regulatory shifts. While payouts remain significant, the absence of $100M+ deals signals potential changes in corporate governance and market dynamics.