Annual Report
The 2026 CEO Pay-for-Performance Report
8% of CEOs graded D or F on pay-performance alignment, while median pay hit $12.0M.
Published April 2026 · SEC proxy data through March 2026
Executive Summary
This annual report examines CEO compensation at 209 publicly traded companies, scoring each on our proprietary Pay-for-Performance Grade. The central finding: executive compensation continues to climb faster than shareholder returns at a significant number of firms. 8% of companies earned a D or F grade, meaning CEO pay growth substantially outpaced company results over the most recent three-year period.
The median CEO compensation package reached $12.0M, with stock awards comprising the largest component of total pay at most companies. The average CEO-to-median-worker pay ratio stands at 157:1, though the worst offenders exceed this figure dramatically. 56% of companies earned an A or B grade, indicating reasonable alignment between what the CEO takes home and what shareholders gain.
Industry variation is stark. Technology and Healthcare CEOs command the highest packages, driven by large equity grants in high-market-cap firms. Meanwhile, say-on-pay advisory votes, the primary mechanism for shareholder pushback, remain largely toothless: most companies pass their votes despite poor performance grades, suggesting institutional investors are not yet using this tool effectively.
Top 10 Highest-Paid CEOs
| Rank | CEO | Company | Total Comp | Pay Ratio | Grade |
|---|---|---|---|---|---|
| 1 | Sundar Pichai | Alphabet | $40.0M | 235:1 | B |
| 2 | Andy Jassy | Amazon | $40.0M | 1143:1 | B |
| 3 | Mark Zuckerberg | Meta Platforms | $40.0M | 242:1 | A |
| 4 | Tim Cook | Apple | $38.6M | 482:1 | D |
| 5 | Satya Nadella | Microsoft | $35.9M | 225:1 | D |
| 6 | Brian Moynihan | Bank of America | $30.0M | 462:1 | D |
| 7 | Safra Catz | Oracle | $30.0M | 188:1 | C |
| 8 | Chuck Robbins | Cisco Systems | $29.1M | 224:1 | D |
| 9 | Marc Benioff | Salesforce | $28.1M | 175:1 | A |
| 10 | David Solomon | Goldman Sachs | $27.6M | 230:1 | B |
Worst CEO-to-Worker Pay Ratios
| Rank | Company | Industry | Pay Ratio | Grade |
|---|---|---|---|---|
| 1 | Amazon | Internet Retail | 1143:1 | B |
| 2 | Airbnb | Online Travel | 625:1 | D |
| 3 | Apple | Technology Hardware | 482:1 | D |
| 4 | Walmart | Retail | 469:1 | C |
| 5 | Bank of America | Banks | 462:1 | D |
| 6 | McDonald's | Restaurants | 429:1 | C |
| 7 | Starbucks | Restaurants | 429:1 | C |
| 8 | Costco | Retail | 375:1 | C |
| 9 | TJX Companies | Retail | 375:1 | C |
| 10 | Home Depot | Home Improvement | 343:1 | D |
CEO Pay by Industry
| Industry | Companies | Avg CEO Pay | Median CEO Pay | Avg Pay Ratio | Avg Score |
|---|---|---|---|---|---|
| Internet Retail | 1 | $40.0M | $40.0M | 1143:1 | 69/100 |
| Internet Services | 1 | $40.0M | $40.0M | 235:1 | 78/100 |
| Social Media | 1 | $40.0M | $40.0M | 242:1 | 93/100 |
| Technology Hardware | 1 | $38.6M | $38.6M | 482:1 | 44/100 |
| Diversified Financials | 1 | $25.0M | $25.0M | 313:1 | 44/100 |
| Cloud Computing | 1 | $25.0M | $25.0M | 161:1 | 69/100 |
| Networking | 2 | $23.6M | $29.1M | 181:1 | 50/100 |
| Fintech | 2 | $22.2M | $24.3M | 277:1 | 63/100 |
Key Trends
Several structural trends continue to shape the CEO pay landscape in 2026. First, the shift toward equity-heavy compensation packages means CEO realized pay can vary dramatically from reported pay depending on stock performance. A CEO who receives $20M in stock grants may realize far more or less depending on share price movement.
Second, say-on-pay votes remain advisory, not binding. Even at companies where our analysis shows poor pay-performance alignment, shareholder approval rates for compensation packages average above 80%. This suggests the say-on-pay mechanism, introduced by Dodd-Frank, has limited practical impact on board compensation decisions.
Third, the CEO-to-worker pay ratio disclosure requirement, while providing transparency, has not meaningfully compressed ratios. Companies with the highest ratios tend to be in industries with large low-wage workforces (retail, hospitality, food service) rather than those paying their CEOs the most in absolute terms.
Methodology
This report analyzes SEC DEF 14A proxy statement filings for 209 publicly traded companies. The Pay-for-Performance Score weights four factors: 3-year total shareholder return alignment (40%), revenue growth vs. CEO compensation growth (30%), say-on-pay vote approval (20%), and CEO-to-worker pay ratio relative to industry peers (10%). See our full methodology for scoring details.
Cite This Report
CEOPayWatch. "The 2026 CEO Pay-for-Performance Report." ceopaywatch.com, April 2026. https://www.ceopaywatch.com/report/ceo-pay-performance-2026
Frequently Asked Questions
Approximately 8% of companies in our dataset received a D or F pay-for-performance grade, indicating significant misalignment between CEO compensation growth and shareholder returns. These companies saw CEO pay increase while total shareholder return declined or underperformed peers over the 3-year measurement period.
The median total CEO compensation across our dataset of 209 public companies is $12.0M. This includes base salary, stock awards, option awards, non-equity incentive compensation, and other benefits. The figure represents a continued upward trend from prior years.
The average CEO-to-median-worker pay ratio across analyzed companies is 157:1. This means the typical CEO earns 157 times what their company's median employee earns. The worst ratios exceed 1,000:1 in some consumer-facing and technology companies.
Technology and Healthcare consistently lead CEO compensation. Internet Retail leads with average CEO compensation of $40.0M, driven by large stock awards. Financial services and Consumer Discretionary round out the top sectors.
The score (0-100, graded A-F) weights four factors: 3-year total shareholder return alignment (40%), revenue growth vs. compensation growth (30%), say-on-pay shareholder vote approval rate (20%), and CEO-to-worker pay ratio vs. industry peers (10%).
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