Executive compensation reflects market recovery
Executive compensation closely mirrors market performance, and 2024 saw a sharp rebound. Median CEO compensation rose 9.7% across the Russell 3000, driven by easing inflation, resilient corporate earnings and reduced recession fears. Long-term incentives (LTIs) now dominate chief executive officer (CEO) pay, comprising 73% of total compensation in the Russell 3000 — a clear indicator of the pay-for-performance model aligning leadership rewards with shareholder value creation.
Smaller companies led the charge, with CEO pay surging 44.7% in firms earning less than $50 million in revenue. Aggressive LTI-heavy packages are helping these organizations compete for leadership talent while conserving cash. Meanwhile, heightened regulatory scrutiny, including the Security and Exchange Commission's (SEC's) pay-versus-performance disclosure rules, is pushing boards to ensure transparency and alignment in executive pay decisions.
Comprehensive executive compensation data
Gallagher's executive compensation data provides detailed analysis of CEO, named executive officer (NEO) and chief financial officer (CFO) pay packages, segmented by company size, industry and market trends. Key findings include:
This executive compensation data equips your board and compensation committee with the tools to design pay-for-performance compensation models that align with organizational goals, meet investor expectations and attract top talent in a competitive market. Explore more on Executive Compensation within Gallagher.
