The Associated Press and Equilar have released their annual analysis of U.S. CEO compensation, providing a detailed look at how they calculate pay packages for top executives at the largest publicly traded companies. The methodology relies on data from Securities and Exchange Commission filings, specifically the summary compensation table, to determine total direct pay.
Key Components of CEO Pay
Total direct pay includes salary, bonuses, perks, stock awards, and option awards. Stock and option awards are valued at their grant-date fair value as reported by the company. The analysis covers CEOs who have served at least two full fiscal years at S&P 500 companies, ensuring a consistent comparison. For 2025, median pay for U.S. CEOs rose nearly 6%, with some packages reaching eye-popping levels.
Data Collection Process
Equilar, a corporate governance data firm, collects the raw data from proxy statements and other SEC filings. AP journalists then verify and analyze the numbers, adjusting for any anomalies such as CEO changes or one-time awards. The final list includes companies with fiscal years ending between January 1 and December 31, 2025.
Why This Matters
CEO pay has been a topic of debate among investors, policymakers, and the public. The AP-Equilar study provides a transparent and consistent benchmark for tracking compensation trends over time. The 2025 data shows that median pay reached $16.3 million, up from $15.4 million in 2024, driven by strong stock market performance and corporate profits.
Limitations of the Data
The analysis does not capture realized pay (what CEOs actually cash in) or changes in pension value. It also excludes companies that are not in the S&P 500, so smaller firms are not represented. Despite these limitations, the study remains a widely cited source for understanding executive compensation trends in the United States.
