Top CEO to Earn a Staggering $164.5 Million in 2024, Leading the Pack in Remuneration.
In the year 2024, the economic landscape saw a significant shift in executive compensation, particularly in the United States and Germany.
Rick Smith, CEO of Axon Enterprise, topped the list as the highest-paid CEO in the S&P-500, earning an impressive 164.5 million USD (approximately 140 million EUR), primarily through stock awards. His counterpart in Germany, Oliver Blume of Volkswagen, held the title of the highest-paid DAX CEO, with a salary of 10.6 million EUR.
The average CEO salary for S&P-500 companies in 2024 was 19 million USD (approximately 16 million EUR), marking a 7.7% increase from the previous year. This rapid growth, however, may soon be affected by the current economic situation, which could potentially slow the rise in CEO salaries.
In contrast, the average total compensation for a DAX board member stood at 5.747 million EUR. While CEOs like Oliver Blume and Björn Gulden of Adidas earned over 10 million EUR, this is relatively lower compared to their S&P-500 counterparts.
The wages of the broader American workforce only increased by 3.6% in 2023, leading to criticism over the high CEO salaries. This trend was mirrored in Germany, where the average DAX board member earned 5.747 million EUR, while the average employee at a company like Nvidia earned around 301,000 USD (approximately 260,000 EUR). Here, CEO Jensen Huang received nearly 50 million USD (approximately 43 million EUR), or 166 times more than the average employee.
Labor unions in both countries have voiced their concerns over this disparity, criticising the trend of high CEO salaries. Interestingly, over 90% of shareholders in top companies continue to support this type of compensation.
The highest-paid S&P-500 CEO after Rick Smith was Brian Niccol of Starbucks, with a package worth 95.8 million USD (approximately 82 million EUR), also mainly in stock awards. Meanwhile, Björn Gulden of Adidas earned over 10 million EUR in the DAX.
As the economic climate evolves, it remains to be seen how CEO salaries will be affected. However, one thing is certain: the ongoing debate about executive compensation and income inequality continues to be a pressing issue in both the US and Germany.
