A substantial majority of companies are planning minimal or no changes to the median base salaries their CEOs receive in 2024, according to a new analysis from Chief Executive Research.
The outlook is based on CEO and senior executive compensation data at more than 1,600 private companies in the U.S., collected and compiled by Chief Executive Research.
The projection of flattening of CEO pay in 2024 arrives after the median CEO base salary rose 4.9% in 2022 and 4.1% in 2023.
Now, more than 70% of the companies surveyed project increases of less than 5% or no increases at all to the median CEO base salary in 2024. More precisely, 31% of companies reported planning no change to their top chief's base pay in 2024, according to the latest compensation report.
Performance bonuses have oscillated greatly in Chief Executive Research's report. In 2022, CEO bonus pay decreased by 18% compared to 2021, reflecting a challenging economy. The median CEO bonus payout is projected to regain the lost ground in 2023 and increase by 28% year over year, putting the projected median CEO bonus payout about 5% higher ($100,000) in 2023 than it was in 2021 ($95,000).
More than half of companies surveyed said they plan to decrease expected bonus payouts or keep them the same in 2024 as in 2023, while 18% said that they plan to raise bonus targets for CEOs but cap the increase at 5%.