CEO pay rises as gap with workers widens in corporate America
TLE DESK: Compensation for chief executives at major US companies rose by nearly six per cent in 2025, widening the gap between top corporate leaders and ordinary workers, according to new data released by The Associated Press.
The typical chief executive received a compensation package worth $17.7 million last year, representing an increase of 5.9 per cent compared with 2024.
The rise reflects efforts by company boards to reward executives for strong financial performance, rising profits and increased shareholder returns. Many firms also used compensation packages as a tool to retain senior leaders and encourage long-term growth.
The AP survey found that at half of the companies examined, a worker earning the median salary within the organisation would need 200 years to make what the chief executive earned in a single year.
That figure has increased from 192 years in the previous survey, highlighting the growing disparity between executive and employee pay.
The findings come amid continued debate over income inequality and executive compensation in the United States, where critics argue that pay packages for senior corporate leaders have risen far faster than wages for ordinary workers.
Supporters of high executive pay contend that chief executives are responsible for delivering growth, managing large organisations and creating value for shareholders, justifying the substantial rewards attached to the role.
The latest figures suggest that while worker pay has generally increased in recent years, compensation at the highest levels of corporate America continues to grow at a faster pace.
The AP’s annual analysis allows workers to compare their earnings with those of leading chief executives, offering a stark illustration of the pay gap that remains a central issue in discussions about corporate governance and economic inequality.
