S&P 500 CEO pay hits record high amid Musk-inspired trends

A new study by the AFL-CIO reveals that average compensation for S&P 500 CEOs rose by 21% in 2025 to $22.8 million, the highest level since the federation began tracking the data in the 1990s. This surge is being driven by an increasing number of mega-pay plans that boards are using as a reference point, often inspired by Elon Musk’s massive compensation structures at Tesla.

When including Musk’s specific compensation, the average S&P 500 CEO pay jumps to $340.1 million. Musk’s own pay package at Tesla, valued at approximately $158 billion in restricted stock, has made him a significant outlier. The report notes that the pay ratio between CEOs and workers at S&P 500 companies reached 312:1 excluding Musk, but skyrocketed to 5,387:1 when his compensation is included.

Labor leaders, including AFL-CIO Secretary-Treasurer Fred Redmond, expressed concern over the widening wealth gap. They attributed the stagnation of worker wages to factors such as the rise of artificial intelligence and the influence of the National Labor Relations Board. The report highlights that while executive pay reaches record highs, the workers’ share of national income has fallen to its lowest level since the Second World War.