CEO pay gap widens as executive compensation hits record highs

A new analysis by the Institute for Policy Studies reveals a widening gap between executive compensation and worker pay. Among the 100 S&P 500 companies with the lowest median pay, the average CEO-to-worker pay ratio rose to 614-to-1 in 2025, up from 574-to-1 in 2019. In these corporations, CEOs earned an average of £13.8 million.

In Texas, the disparity is particularly notable, with the state ranking 14th highest in the nation for CEO-to-employee wage gaps. Texas CEOs earned an average of $22.8 million in 2025, a 21% increase from the previous year. For example, Tesla CEO Elon Musk earned approximately $132.3 billion in 2025, which represents roughly 2.5 million times the average pay of a Tesla employee.

While executive pay reaches record levels, median worker pay has struggled to keep pace with inflation. The report notes that employees in retail and delivery sectors, including those at companies like Walmart, Target, and DoorDash, face increased economic vulnerability due to stagnant wages and cuts to government assistance programs such as Medicaid and SNAP.