The gap between what top executives and workers earn at major public companies continued to widen in 2025, according to the AFL-CIO's 2026 Executive Paywatch report.
Median compensation for chief executives at S&P 500 companies reached $17.3 million, while the average ratio between CEO and worker pay rose to 312-to-1 when Tesla and SpaceX CEO Elon Musk is excluded.
Here's what to know
The World Socialist Web Site reported that average S&P 500 CEO compensation increased 21% in a year, climbing from $18.9 million in 2024 to $22.8 million in 2025.
According to the American Federation of Labor and Congress of Industrial Organizations, that 2025 average is the highest level since recordkeeping began in the 1990s.
The Paywatch report also put the median company CEO-to-worker ratio at 198-to-1 and said most S&P 500 CEOs made more in a single day than the median U.S. worker earned across an entire year.
Tesla's filing placed Musk in a category of his own. The company reported $158.3 billion in 2025 compensation for him, equal to 14 times the combined pay of all other S&P 500 CEOs.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
Counting Musk, average S&P 500 CEO compensation rises to $340.1 million and the pay ratio to 5,387-to-1. Tesla reported median employee pay of $62,786, resulting in a ratio of 2,522,203-to-1.
The Paywatch report paired those compensation figures with signs of financial strain, citing food insecurity for 8% of households, an inability to pay all bills in full for 16% of adults, skipped medical care because of cost for 26% of adults, and insufficient cash for a $400 emergency for 37% of adults.
More background
One of the biggest drivers of these giant pay packages is stock-based compensation.
The report noted that stock awards now make up the largest share of executive pay, allowing leaders to cash in on soaring valuations that may outpace a company's underlying performance.
That disconnect shows up in Tesla's numbers. Tesla brought in $94.8 billion in revenue and $3.9 billion in net income in 2025, while its automotive revenue fell 9%. Musk's reported compensation still topped the company's annual revenue, amounting to 41 times its net income.
Other companies also handed out massive awards. Welltower listed $821 million in compensation for CEO Shankh Mitra, mostly from a stock award, despite advisory-vote support from just 19% of shares. Goldman Sachs listed $118.9 million for CEO David Solomon.
Economic Policy Institute data shows how much the gap has widened. Realized CEO compensation rose 1,094% from 1978 to 2024, while typical worker pay increased only 26% over the same period.
What can be done?
The AFL-CIO is using the data to argue for stronger checks on executive pay. One proposal would require companies whose CEO-to-worker pay ratios exceed 100-to-1 to negotiate union contracts.
WSWS noted that AFL-CIO Secretary-Treasurer Fred Redmond told Reuters that Musk's pay "changes the dynamic when other CEO compensation plans come up, boards use it as a reference."
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
