CEO Pay Tops $18 Million as Turnover Drives Six-Year High in Sign-On Bonuses, According to Diligent

New Diligent Market Intelligence report finds succession costs rising as boards compete for scarce leadership talent and compensation committees face sharper investor scrutiny

Median granted CEO pay at S&P 500 companies rose by more than 8% in 2025 to reach $18.2 million, while cash sign-on bonuses for incoming CEOs hit a six-year high, according to the Executive Compensation in 2026 report from Diligent Market Intelligence.

The findings point to a more consequential compensation environment for boards: leadership talent is in shorter supply, CEO transitions are costly, and investors continue to scrutinize how pay decisions connect to performance and long-term value.

The Russell 3000 also saw remuneration packages grow larger, with median granted CEO pay climbing over 2% to $7.4 million.

“This level of growth has been fueled by performance-based equity and stock awards while both indices have been delivering strong total shareholder returns,” said Josh Black, Editor-in-Chief of Diligent Market Intelligence. “Boards are also increasingly viewing CEOs as a scarce global talent pool.”

CEO turnover drives higher transition costs

• Cash sign-on bonuses for new S&P 500 CEOs reached a six-year high in 2025, averaging $3.7 million, up from $3 million in 2024 and $2.4 million in 2023.
• Severance for departing CEOs also climbed, reaching an average of $6.8 million at S&P 500 companies in 2025.
• The rise in succession costs comes as CEO turnover has accelerated in recent years. Almost 40 S&P 500 CEOs had departed by the end of June 2026, with 67 executives transitioning during 2025, up 29% since 2023.

U.K. boards loosen pay structures as Europe closes the gap

• As the U.K. competes to retain executives, median granted CEO pay in the FTSE 100 rose 16% to reach 6.1 million pounds.
• U.K. boards are loosening pay structures while retaining core safeguards. Long-term incentives accounted for over 54% of median granted CEO pay in the FTSE 100 in 2025, up from 52% in 2024.
• Median granted CEO pay rose by nearly 14% in France’s CAC 40 to 6.8 million euros, while Germany’s DAX recorded a more modest 2% increase, bringing median pay to the same level as its European counterpart.

Compensation committees face heightened investor scrutiny

• If adopted, the SEC’s proposed overhaul of the compensation disclosure regime could remove the obligation to hold a “say on pay” vote from 80% of public companies. That could make the compensation committee a more prominent focal point for investors seeking to register dissatisfaction with executive pay.
• Average support for S&P 500 directors held steady at 96% in the opening half of 2026. However, compensation committee chairs received lower average support at just over 94%, while committee members secured nearly 96% approval.
• Average support for “say on pay” resolutions at the S&P 500 exceeded 90% in the first half of 2026, compared with almost 90% for the full year in 2025. This broad support contrasted with growing resistance to golden parachute proposals, with investor backing falling from 84% in the first half of 2025 to 77% in the first half of 2026.

To download Executive Compensation in 2026, which includes data tracking pay trends across the U.S., Europe, Canada and Australia, click here.

About the report

The report references data from Diligent Market Intelligence’s Compensation, Governance and Voting modules. Compensation data for 2025 is based on filings made available up to June 30, 2026. Other datasets featured run from January to June 30, 2026, unless otherwise stated. Further data is available on request. For more information, please email dmi.press@diligent.com

About Diligent Market Intelligence

Diligent Market Intelligence (DMI) is a market-leading provider of shareholder activism, investor voting, and corporate governance data. Through its web application and data feeds, clients can access the most complete solution for listed company intelligence on the market, with broader and deeper insights than ever before.

About Diligent

Diligent is the AI leader in governance, risk and compliance (GRC) solutions, helping more than 1 million users and 700,000 board members to clarify risk and elevate governance. The Diligent One Platform gives practitioners, the C-suite and the board a consolidated view of their entire GRC practice so they can more effectively manage risk, build greater resilience and make better decisions, faster. Learn more at diligent.com.

Follow Diligent on LinkedIn and Facebook.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260929967483/en/