S&P 500 CEOs' compensation in 2024 highlights vast differences from Rick Smith to Tim Cook

A Wall Street Journal analysis of S&P 500 CEO compensation in 2024 reveals significant disparities, with Axon Enterprise's Rick Smith leading at $164.53 million, primarily from stock awards linked to company performance; followed by GE Aerospace's Lawrence Culp Jr. at $88.95 million, Blackstone's Stephen Schwarzman at $84.03 million, Apple's Tim Cook at $74.61 million, and KKR's Joseph Bae at $73.09 million, highlighting the lucrative compensation packages at the helm of major corporations.

Analysis

A Wall Street Journal analysis of 2024 S&P 500 CEO compensation reveals substantial pay packages, with Axon Enterprise's Rick Smith topping the list at $164.53 million, a figure largely driven by stock awards contingent on company performance for the firm with a market capitalization exceeding $58 billion. Other notable high earners include Lawrence Culp Jr. of GE Aerospace ($88.95 million), who has led since before General Electric's division; Stephen Schwarzman of Blackstone ($84.03 million), a co-founder of the private equity firm managing nearly $1.2 trillion in assets; Apple's Tim Cook ($74.61 million), CEO since 2011, whose package included cash, equity, and other compensation; and KKR's co-CEO Joseph Bae ($73.09 million), whose firm reported $21.9 billion in revenue and $3.08 billion in net income for 2024. The study, encompassing over 400 CEOs with at least one year of tenure, indicated a broad trend of significant remuneration, with more than half receiving compensation packages valued at $17.1 million or more, underscoring the considerable financial rewards at the leadership level of major U.S. corporations.

Key Decisions for Investors

• Investors should scrutinize the structure of executive compensation packages, particularly the proportion and metrics tied to substantial performance-based awards like Axon's $164.53 million plan, to ensure robust alignment with long-term shareholder value creation.
• Evaluate the governance implications of high CEO remuneration at companies such as GE Aerospace, Blackstone, Apple, and KKR, considering these packages within the broader context of company performance, strategic execution, and shareholder returns.
• Utilize the report's finding that over half of surveyed S&P 500 CEOs earned at least $17.1 million as a benchmark when reviewing individual company proxy statements and engaging on matters of executive pay and corporate governance.