A new study has named Elon Musk as the CEO who received the highest bonus payment in recent years.
Analysis undertaken by investment website The Stock Dork examined bonus payments of CEOs from the top 50 companies over the last five years to determine those with the highest compensation payments and average compensation over the period.
The results highlight the disparity in bonus payments between CEOs and median employees - and larger issues of income inequality in corporate settings.
Such wage gaps can impact employee morale and retention, shape public perception of companies, and have broader economic ramifications due to concentrated wealth.
While some argue that CEOs' unique responsibilities and pressures justify their high compensation, concerns about fairness, equity, and the collective contribution of all employees to a company's success remain central to the debate.
Balancing the attraction of top leadership talent with broader social and economic implications poses an ongoing challenge for businesses.
Stock Dork founder Adam Garcia said of the findings: “It's intriguing to observe the compensation models of renowned CEOs. For instance, in 2022, Mark Zuckerberg of Meta Platforms chose a symbolic $1 salary and forwent any bonus. However, he received $27 million in other compensation-like awards, covering investments and security costs.”
“Many top executives increasingly favor stocks, options, and performance-related rewards. This shift in strategy aligns CEOs' incentives with their companies' growth and is well-received by board members.”
Here are the 10 who receive the biggest bonus payments.
1. Elon Musk
The CEO with the most impressive average yearly bonus is Elon Musk of Tesla. Musk's average yearly bonus stands at an impressive $456.7 million (£369.09 million). A significant chunk of this average was influenced by a massive one-time stock option bonus of $2.23 billion in 2018, the largest ever given to a CEO. If Elon Musk had received this monumental bonus today, it would equate to the Tesla CEO taking home $67,011 for every $1 earned by his median-paid employees. While his substantial earnings are closely tied to performance-based stock options, this direct comparison highlights the significant wage disparity within the company's leadership.
2. Sundar Pichai
In second place is Sundar Pichai of Alphabet. His average yearly bonus is a whopping $98.9 million (£79.93 million). In 2022 he received $10 million as a cash bonus and $42.2 million as stocks, which means that for every dollar the median Google employee earned, Sundar Pichai took home $275 in bonus payments.
3. Andy Jassy
Securing third place is Andy Jassy of Amazon. Andy Jassy's yearly bonus average lands at $53.4 million (£43.16 million). The Amazon CEO’s highest recent bonus was in 2021, when he received a $211 million equity bonus. Andy Jassy collected $6,198 as bonus payments for every dollar the typical Amazon worker made.
4. Safra Catz
Safra Catz of Oracle takes the fourth spot with an average bonus of $50.8 million a year (£41.06 million). In 2022, Safra was awarded $129 million in stock options, which, when broken down, reveals that for every dollar earned by the average Oracle employee, Safra took home $1,723 in bonuses. Stock awards comprise a considerable portion of her compensation, reflecting Oracle's long-term growth strategy.