CEO Pay Rose as S&P 500 Boards Boosted Bonuses
Public companies used larger sign-on packages to compete for executive talent tasked with navigating complex risks.
Updated on Oct. 1, 2026 in Public Companies
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Median CEO compensation at S&P 500 companies reached $18.23 million in 2025, marking a significant rise from $15.68 million in 2023. This increase reflects heightened competition for leaders capable of managing supply chain, tariff, and AI development risks.
Why it matters
Rising compensation packages underscore the premium placed on executive experience as firms navigate operational volatility. Strong shareholder returns have largely insulated boards, though potential SEC rule changes could shift this dynamic significantly.
Median CEO pay at S&P 500 firms rose 16% through 2025, while average sign-on bonuses jumped to $3.7 million from $2.4 million in 2023. These increases coincided with a 29% rise in CEO turnover across the same period.
The players
Securities and Exchange Commission
The federal agency responsible for regulating markets and proposing rules that govern corporate governance and shareholder disclosure.
Procore Technologies
A publicly traded construction software provider that faced investor opposition regarding executive compensation structures.
The details
Boards are leveraging significant sign-on bonuses to secure leadership talent against a backdrop of increasing turnover. Investors have largely backed these moves, with compensation committees maintaining 95% average support during the first half of 2026. However, the SEC has proposed eliminating advisory say-on-pay votes for approximately 80% of listed companies, a move that may trigger heightened shareholder activism directed at board committees if implemented.
Timeline
2023 served as the baseline for comparing executive compensation and turnover metrics.
2025 marked the end of the period measuring CEO pay and average sign-on bonuses.
First half of 2026 saw compensation committees receive 95% average investor support.
Market Landscape
The proposed SEC changes to advisory voting requirements represent a potential shift away from the transparency standards established by the Dodd-Frank Act. If enacted, this policy would mark a significant departure from the current oversight model for executive compensation.
Operators should monitor the SEC's proposal to eliminate say-on-pay votes, as its adoption will likely shift shareholder activism toward board committees. Reviewing internal talent acquisition costs against these public benchmarks is recommended for firms benchmarking executive recruitment.
The takeaway
The sustained increase in CEO compensation reflects an intensifying war for talent amidst significant market risks. Owners should prepare for potential changes in shareholder engagement protocols if the proposed SEC rule removes the advisory say-on-pay mechanism.
Further reading
For more insight into regulatory shifts and governance trends, visit Public Companies.
Source note: This article includes information reported by Corporate Compliance Insights.
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Should the SEC require public companies to maintain advisory shareholder votes on executive compensation?
