NEW YORK (April 24, 2025) – ISS-Corporate, a leading provider of compensation, governance, cyber risk monitoring, and sustainability offerings to help companies improve shareholder value and reduce risk, today announced the results of a preliminary analysis of CEO pay changes at S&P 500 companies with shareholder meetings on or after January 1, 2025.
The study, which analyzed 320 S&P 500 companies at which the CEO was in the same role for the current and previous filing years, found a median CEO pay increase of 7.5 percent from the 2024 to 2025 filing periods. This rate of growth represents a slight decrease from the 9.2 percent rise observed between the 2023 and 2024 filing periods, suggesting a continued robust growth in CEO pay levels despite recent market turbulence.
Median pay for CEOs at the included large cap companies stood at $16.8 million, the analysis found. More than 69 percent of S&P 500 CEOs in the study received a pay increase while compensation fell for around 31 percent of them. For the segment of companies that increased pay for their chief executives, the median change was 13.2 percent, while for the segment of companies where pay dropped, compensation decreased by a median of 7.2 percent.
“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. “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.”
A closer look into the components of compensation reveals that, consistent with previous years, CEO pay growth was largely driven by increases in the value of stock and option awards. While the median base salary of $1.3 million reflects a relatively modest increase of 2.7 percent over the previous filing period, the median stock award now stands at $9.9 million and the median option award (when granted) at $3.3 million, representing median increases of 6.9 percent and 6.0 percent respectively over award values in the previous year.
Large cap companies generally demonstrated strong total shareholder returns (TSR) over the measurement period with a median 1-year TSR of 15.1 percent for the subject companies of the analysis (measured at the end of the fiscal year). TSR was positive for both the companies that increased pay, who had a median TSR of 16.8 percent, and those that lowered pay, who had a median TSR of 10.8 percent.
Industries with the most drastic increases in CEO compensation include Consumer Durables & Apparel and Commercial & Professional Services with median changes of 21.2 percent and 16.9 percent respectively. CEO compensation decreased by a median of 4.4 percent for companies in the Food, Beverage, & Tobacco industry.
Variations at the industry level show the most notable disparity between median change in CEO pay and median TSR at companies in the Bank sector, where the median TSR was 33.5 percent while pay grew by 9.4 percent, and at Transportation companies, where the median TSR decreased by 3.6 percent while pay increased by 11.3 percent. The worst performing industry was Automobiles & Components where median TSR decreased by 23.0 percent, while median change in pay was slightly lower at 1.0 percent.
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About ISS-Corporate
Companies turn to ISS Corporate Solutions, Inc. (“ISS-Corporate”) for expertise in designing and managing governance, compensation, sustainability, and cyber risk programs that align with company goals, reduce risk, and manage the needs of a diverse shareholder base by delivering data, tools, and advisory services. ISS-Corporate’s global client base extends across North America, Europe, and Asia, as well as other established and emerging markets worldwide. ISS-Corporate is a wholly owned subsidiary of Institutional Shareholder Services Inc. (“ISS”) and part of the ISS STOXX GmbH group of companies. ISS Corporate provides advisory services, analytical tools and publications to companies to enable them to improve shareholder value and reduce risk through the adoption of improved corporate governance practices. The ISS STOXX Governance and ESG research teams, which are separate from ISS-Corporate, will not give preferential treatment to, and are under no obligation to support, any proxy proposal of a corporate issuer nor provide a favorable rating, assessment, and/or any other favorable results to a corporate issuer (whether or not that corporate issuer has purchased products or services from ISS Corporate). No statement from an employee of ISS-Corporate should be construed as a guarantee that ISS STOXX will recommend that its clients vote in favor of any particular proxy proposal or provide a favorable rating, assessment or other favorable result. For more information, please visit https://www.iss-corporate.com/.
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,800 professionals operating across 30 global locations in 20 countries. Its approximately 5,500 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Audrey Dedrick
Senior Associate, Communications
media@iss-corporate.com
2025 Filings Show Robust CEO Pay Increases at U.S. Large Cap Companies, ISS-Corporate Analysis Finds
NEW YORK (April 24, 2025) – ISS-Corporate, a leading provider of compensation, governance, cyber risk monitoring, and sustainability offerings to help companies improve shareholder value and reduce risk, today announced the results of a preliminary analysis of CEO pay changes at S&P 500 companies with shareholder meetings on or after January 1, 2025.
The study, which analyzed 320 S&P 500 companies at which the CEO was in the same role for the current and previous filing years, found a median CEO pay increase of 7.5 percent from the 2024 to 2025 filing periods. This rate of growth represents a slight decrease from the 9.2 percent rise observed between the 2023 and 2024 filing periods, suggesting a continued robust growth in CEO pay levels despite recent market turbulence.
Median pay for CEOs at the included large cap companies stood at $16.8 million, the analysis found. More than 69 percent of S&P 500 CEOs in the study received a pay increase while compensation fell for around 31 percent of them. For the segment of companies that increased pay for their chief executives, the median change was 13.2 percent, while for the segment of companies where pay dropped, compensation decreased by a median of 7.2 percent.
“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. “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.”
A closer look into the components of compensation reveals that, consistent with previous years, CEO pay growth was largely driven by increases in the value of stock and option awards. While the median base salary of $1.3 million reflects a relatively modest increase of 2.7 percent over the previous filing period, the median stock award now stands at $9.9 million and the median option award (when granted) at $3.3 million, representing median increases of 6.9 percent and 6.0 percent respectively over award values in the previous year.
Large cap companies generally demonstrated strong total shareholder returns (TSR) over the measurement period with a median 1-year TSR of 15.1 percent for the subject companies of the analysis (measured at the end of the fiscal year). TSR was positive for both the companies that increased pay, who had a median TSR of 16.8 percent, and those that lowered pay, who had a median TSR of 10.8 percent.
Industries with the most drastic increases in CEO compensation include Consumer Durables & Apparel and Commercial & Professional Services with median changes of 21.2 percent and 16.9 percent respectively. CEO compensation decreased by a median of 4.4 percent for companies in the Food, Beverage, & Tobacco industry.
Variations at the industry level show the most notable disparity between median change in CEO pay and median TSR at companies in the Bank sector, where the median TSR was 33.5 percent while pay grew by 9.4 percent, and at Transportation companies, where the median TSR decreased by 3.6 percent while pay increased by 11.3 percent. The worst performing industry was Automobiles & Components where median TSR decreased by 23.0 percent, while median change in pay was slightly lower at 1.0 percent.
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About ISS-Corporate
Companies turn to ISS Corporate Solutions, Inc. (“ISS-Corporate”) for expertise in designing and managing governance, compensation, sustainability, and cyber risk programs that align with company goals, reduce risk, and manage the needs of a diverse shareholder base by delivering data, tools, and advisory services. ISS-Corporate’s global client base extends across North America, Europe, and Asia, as well as other established and emerging markets worldwide. ISS-Corporate is a wholly owned subsidiary of Institutional Shareholder Services Inc. (“ISS”) and part of the ISS STOXX GmbH group of companies. ISS Corporate provides advisory services, analytical tools and publications to companies to enable them to improve shareholder value and reduce risk through the adoption of improved corporate governance practices. The ISS STOXX Governance and ESG research teams, which are separate from ISS-Corporate, will not give preferential treatment to, and are under no obligation to support, any proxy proposal of a corporate issuer nor provide a favorable rating, assessment, and/or any other favorable results to a corporate issuer (whether or not that corporate issuer has purchased products or services from ISS Corporate). No statement from an employee of ISS-Corporate should be construed as a guarantee that ISS STOXX will recommend that its clients vote in favor of any particular proxy proposal or provide a favorable rating, assessment or other favorable result. For more information, please visit https://www.iss-corporate.com/.
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,800 professionals operating across 30 global locations in 20 countries. Its approximately 5,500 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Audrey Dedrick
Senior Associate, Communications
media@iss-corporate.com
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