S&P 500 CEO Pay Hits $22.8 Million Record as Musk’s $1 Trillion Tesla Deal Reshapes Boards
Updated
Updated · Forbes · Aug 13
S&P 500 CEO Pay Hits $22.8 Million Record as Musk’s $1 Trillion Tesla Deal Reshapes Boards
3 articles · Updated · Forbes · Aug 13
Summary
Average S&P 500 CEO compensation plans climbed 21% in 2025 to a record $22.8 million, according to AFL-CIO data cited by Reuters.
Elon Musk’s Tesla package—worth more than $1 trillion if performance targets are met—has become a benchmark that boards cite when setting other chief executives’ pay, AFL-CIO’s Fred Redmond said.
Including Musk’s award, the average compensation plan for S&P 500 CEOs jumps above $340 million, showing how one outlier can skew the broader market.
Tesla shareholders approved the package last year, tying payouts to goals including an $8.5 trillion market value within 10 years and 12 million additional vehicle sales.
The deal has drawn investor criticism over dilution and key-person risk, underscoring how Musk’s pay structure could influence executive compensation norms well beyond Tesla.