CEO compensation strong at S&P 500 companies

While this marked a modest slowdown from the 9.2% median increase reported for the same period last year, the data signalled “continued robust growth in CEO pay,” it said.

“CEO pay disclosures at large U.S. companies broadly reflect the strong market performance of last year,” said Roy Saliba, managing director at ISS-Corporate, in the report. 

“However, recent market turbulence and ensuing uncertainty around tariffs, a global trade war, and a possible looming recession could raise concerns over significant CEO pay increases at companies that may be facing headwinds in the coming months,” he added.

More than two-thirds (69%) of the companies reviewed reported higher CEO compensation in 2025, while pay dropped for 31%, ISS said. 

“For the segment of companies that increased pay for their chief executives, the median change was 13.2%, while for the segment of companies where pay dropped, compensation decreased by a median of 7.2%,” it noted.

The rise in CEO pay was also accompanied by stronger shareholder returns. Overall, the median one-year total shareholder return for the companies reviewed was 15.1%, ISS said. 

Larger pay gains were also correlated with higher shareholder returns. At companies with CEOs whose pay rose, the median total shareholder return was 16.8%, while the median return for companies where CEO pay fell was 10.8%.

The biggest outperformers were banking sector CEOs, who saw median pay rise 9.4%, while the median shareholder return was 33.5%. 

Conversely, in the transportation sector, median CEO pay was up 11.3%, despite a 3.6% decline in shareholder returns; and, in the auto sector, while the median return dropped by 23%, CEO pay was only down 1%, ISS reported.

The growth in CEO pay was “largely driven by increases in the value of stock and option awards,” ISS said. 

While the median base salary rose 2.7% to US$1.3 million, the median stock award was up 6.9% to US$9.9 million, and the median option award rose 6% to US$3.3 million, it reported.

By sector, the strongest gains in CEO compensation came in the consumer durables and apparel as well as commercial and professional services sectors, which saw median pay climb by 21.2% and 16.9%, respectively. 

Conversely, the food, beverage, and tobacco industry saw median pay decline by 4.4%.