S&P 500 CEO salary and stock-options for 2022

B3GIN Team
20/06/22
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The Standard and Poor's 500 (S&P 500) tracks the stock performance of 500 large companies listed on exchanges in the United States. CEOs of the companies in this index have compensation packages increasing almost every year.

S&P 500 CEOs’ remuneration packages rose more than 15% on average in 2021.

How are these packages structured?

There are 4 main components:

  • Salary
  • Stock awards
  • Employee stock options
  • Bonuses

 

A study conducted by Equilar shows for 2022 that employee stock options represent on average almost 20% of the total package for CEOs.
While on average stock awards make up more than half of S&P CEO pay. 

 

S&P 500 CEO pay packages

 

 

In 2019, Sundar Pichai, CEO of Alphabet (the parent company of Google) earned $280 million.
His salary ($650 0000) represented only 0.23% of the total remuneration package while stock awards were $277M.

Another interesting case is Reed Hastings, Netflix’s CEO.
In 2014, Hastings earned $11M, $3M in salary and $8M in stock options.
Hastings almost quadrupled his remuneration in 5 years. He earned $39M in 2019. However, Hastings salary decreased to $700 000 while his stock options skyrocketed to $37M.

In 2019, the S&P 500 CEOs median pay reached $13M.

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