CEO Pay Surges 8% in S&P 500 as Sign-On Bonuses Hit Six-Year High…

Event summary

Median granted CEO pay at S&P 500 companies rose 8% in 2025 to $18.2 million.
Cash sign-on bonuses for incoming S&P 500 CEOs averaged $3.7 million, a six-year high.
CEO turnover in the S&P 500 accelerated, with 67 executives transitioning in 2025, up 29% since 2023.
FTSE 100 CEO pay rose 16% to £6.1 million, while CAC 40 saw a 14% increase to €6.8 million.
Average support for 'say on pay' resolutions at S&P 500 exceeded 90% in early 2026.

The big picture

The surge in CEO pay and sign-on bonuses reflects a tightening talent market for top executives, with boards increasingly viewing CEOs as a scarce global resource. This trend is compounded by rising turnover costs and heightened investor scrutiny over compensation practices. The data suggests a broader shift in corporate governance, where executive pay is becoming more performance-driven but also more expensive to manage.

What we're watching

Talent Scarcity: How boards will balance rising CEO pay with investor expectations for performance-linked compensation.
Regulatory Headwinds: Whether the SEC's proposed changes to compensation disclosure will reduce investor oversight of executive pay.
Global Competition: The pace at which European markets like the U.K. and France continue to close the CEO pay gap with the U.S.