Citigroup Inc.

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Citigroup Inc. stock analysis C overview
Somewhat Bearish -41

Median pay for CEOs rose nearly 6% in 2025, but some compensation packages were eye-popping

📈 Median CEO compensation rose nearly 6% in 2025 to reach $17.7 million, driven by larger profits and higher stock prices.

💰 The median S&P 500 employee earned $89,744, a 4.7% increase that still leaves the average worker behind on their CEO's one-year pay in roughly 200 years.

📊 The survey analyzed 337 executives from companies filing proxy statements between January 1 and April 30 based on data provided by Equilar.

⚖️ The pay ratio between median workers and CEOs has widened, with half of surveyed companies now having a gap requiring 200 years of worker earnings to match CEO pay in one year.

🏢 At Coca-Cola, the CEO's compensation was nearly 1,739 times that of the median worker, while TJX Cos.'s CEO earned 1,774 times more than its average employee.

🗳️ Most shareholder "say on pay" votes are non-binding and saw overwhelming approval, with an average "yes" vote around 90% across surveyed companies.

📉 Modern CEO packages consist largely of stock awards tied to performance metrics like market value and operating profits rather than just salary or bonuses.

🚀 Elon Musk received a compensation package valued at $132.3 billion entirely in stock, contingent on ambitious ten-year targets for Tesla's market value and innovation goals.

🏥 Shankh Mitra of Welltower earned the second-largest package at $821.1 million, mostly in stock awards after the company's stock price tripled since 2020.

⚠️ Advocates argue that soaring CEO pay is obscene while working families struggle with rising costs and inflation across the private sector.

📉 Private-sector wages net of benefits rose 3.4% through 2025, bringing the average U.S. worker's annual income to $67,000 or $96,000 including benefits.

🏛️ Legislative and ballot initiative campaigns in cities like San Francisco and Los Angeles are exploring taxes on companies with large executive-worker pay gaps.

Bullish Signals
  • Median pay for CEOs rose nearly 6% in 2025 to $17.7 million as company boards rewarded top executives for bigger profits and higher stock prices.
  • Many companies have tied CEO compensation more closely to performance, with a large proportion of pay packages consisting of stock awards that require meeting targets like higher stock prices or improved operating profits.
  • Shareholders show overwhelming support for these plans, with the average 'yes' vote at companies in this year's survey reaching around 90%.
  • Elon Musk's compensation package valued at $132.3 billion is tied to ambitious targets over the next 10 years for Tesla's market value and the development of a fleet of robotaxis and humanoid robots.
  • Shankh Mitra of Welltower received the second-largest compensation package in the survey at $821.1 million after Welltower's stock price tripled since October 2020.
Risk Factors
  • Median CEO pay rose nearly 6% in 2025 to $17.7 million while the median employee wage increased only 4.7%, widening the income gap.
  • The pay ratio between CEOs and median workers has worsened, requiring middle-of-the-pack employees an average of 200 years to earn what a CEO makes in one year, up from 192 years last year.
  • Extreme compensation disparities persist across industries; for example, the Coca-Cola CEO earned nearly 1,739 times the median worker's pay, and TJX Cos.'s CEO earned 1,774 times more.
  • Shareholder oversight mechanisms are ineffective as 'say on pay' votes remain non-binding, with an average 90% approval rate for pay plans despite public criticism.
  • Critics including Sarah Anderson of the Institute for Policy Studies argue that such skyrocketing CEO pay is obscene while working families struggle with rising costs and credit card debt.
  • Ballot initiatives in San Francisco and Los Angeles aim to raise taxes on companies with sizable CEO-worker pay gaps, suggesting potential regulatory risks and increased financial burdens for corporations.
  • A significant proportion of modern CEO compensation comes in the form of stock awards, which executives often cannot access unless specific ambitious performance targets are met over years or decades.
  • High-profile executive compensation packages, such as Elon Musk's $132.3 billion in stock awards contingent on meeting futuristic goals for robotaxis and humanoid robots, face intense scrutiny from diverse groups including religious leaders.
Full Analysis
CEO compensation packages at S&P 500 companies increased by nearly 6% in 2025 to reach a median total value of $17.7 million, driven by higher profits and stock prices according to a new survey by the Associated Press. The AP data, analyzed for them by Equilar, covers pay disclosed in proxy statements from January through April 30 for executives serving at least two full consecutive fiscal years. While the median CEO salary rose, it remains vastly disproportionate to employee earnings, with the ratio of CEO-to-median worker pay reaching a new high of 192 times the median wage last year and rising again; in some cases, such as Coca-Cola and TJX Cos., the gap exceeds 1,700 times the median worker's pay. The survey notes that while private-sector wages rose 3.4% through 2025 to an average of $67,000 plus benefits, CEO compensation has increasingly shifted toward long-term stock awards tied to performance metrics like market value or operational profits rather than immediate cash bonuses. The article highlights specific examples of extreme pay disparities and packages, including Elon Musk's $132.3 billion in potential Tesla stock awards contingent on ambitious ten-year targets for robotaxis and humanoid robots, a deal that has drawn criticism even from high-profile figures like Pope Francis. Shankh Mitra, CEO of Welltower, received the second-largest package at $821.1 million primarily in stock following a tripling of his company's share price since he took office in 2020. Despite shareholder advocacy for performance-based pay and annual non-binding "say on pay" votes where approval averages around 90%, the gap between executive and worker compensation continues to attract scrutiny from labor advocates and lawmakers who argue that current levels are obscene given economic hardships faced by working families.