Elon Musk’s pay package of up to $1 trillion highlights the continued escalation in CEO compensation, even as worker pay slows and rewards to shareholders remain mixed, according to several studies.
Already, Musk is the richest person on the planet with a net worth that tops $660 billion, according to Bloomberg. Musk saw his 2018 Tesla pay package -- now valued at over $130 billion -- reinstated in December, and his company SpaceX looks set to for a potential public offering in 2026. Those two events could well put Musk on his way to becoming the world’s first trillionaire this year. In addition, his new pay package, valued at up to $1 trillion, could also start paying out over the next decade.
While Musk may be an outlier, his stock-fueled gains highlight the booming compensation and wealth gains of CEOs in recent decades that has been driven by rising stock markets and a broader adoption of stock-centric pay packages
Over the past 50 years, top CEO compensation has climbed 1,094%, according to the Economic Policy Institute. That compares to a 26% increase in typical worker compensation.
Median total compensation for S&P 500 CEO’s was $17.1 million in 2024, up nearly 10% from 2023, according to Equilar, a corporate analytics firm. CEOs now make 192 times more than the average employee, up from a 186 to 1 ratio in 2023.
