
A Diligent report found higher executive pay and sign-on bonuses as CEO turnover and investor scrutiny shaped compensation decisions.
Median granted CEO pay at S&P 500 companies rose more than 8% in 2025 to $18.2 million, according to a report from Diligent Market Intelligence. Cash sign-on bonuses for incoming CEOs averaged $3.7 million, the highest level in six years.
The report said performance-based equity and stock awards helped drive pay growth. Median granted CEO pay in the Russell 3000 increased more than 2% to $7.4 million.
Transition costs also rose. Average severance for departing S&P 500 CEOs reached $6.8 million in 2025, while 67 executives moved on from their roles during the year, up 29% from 2023. Almost 40 S&P 500 CEOs had departed by the end of June 2026.
The findings come as compensation committees face investor scrutiny over how executive pay relates to performance and long-term value. Average support for S&P 500 compensation committee chairs was just over 94% in the first half of 2026, below the 96% average for directors.
Diligent said a proposed SEC overhaul, if adopted, could remove the requirement for a “say on pay” vote at 80% of public companies. Support for S&P 500 “say on pay” resolutions exceeded 90% in the first half of 2026, while backing for golden parachute proposals fell to 77%.
The report’s 2025 compensation data is based on filings available through June 30, 2026.
This article was produced with the help of AI technology.
Source: Yahoo Finance