Introduction
The highest-paid CEOs don’t always lead the world’s largest companies. Some chief executives at smaller tech and financial firms out-earn the top brass at giants like Apple and Blackstone. This observation stems from recent research by C-Suite Comp, a data analytics firm that monitors leaders’ compensation at nearly 4,000 publicly traded U.S. companies.
In 2023, C-Suite Comp published its list of the highest-paid CEOs based on “total compensation granted.” This measure includes executives’ salaries, bonuses, perks, and stock options, among other factors. CEOs often receive restricted stock or options as a significant part of their compensation, the value of which can fluctuate based on the company’s performance and market conditions.
To improve pay transparency, the Securities and Exchange Commission (SEC) finalized a rule in 2022 requiring public companies to disclose how much CEOs are poised to make in a given year by calculating gains and losses in the stock awards that constitute much of their pay packages. This measure of executive earnings, called “compensation actually paid” under SEC rules, aims to help stakeholders better understand how executive pay aligns with the company’s financial performance.
C-Suite Comp includes two rankings of executive earnings in its report: one based on “total compensation granted” in 2023 and another using “compensation actually paid,” which accounts for recent changes in the value of current and potential stock holdings.
Highest-Earning CEOs in the U.S. by Compensation Actually Paid in 2023
Elon Musk, Tesla – $1.4B
Elon Musk, the CEO of Tesla, tops the list with a staggering $1.4 billion in compensation. His all-stock package rewards him for transforming Tesla into the world’s top-selling electric vehicle maker and increasing its market value by billions.
Alexander Karp, Palantir Technologies – $1.1B
Alexander Karp, co-founder and CEO of Palantir Technologies, earned $1.1 billion. Karp has been instrumental in growing Palantir into a leading company in big data analytics, which has numerous applications in both the public and private sectors.
Hock Tan, Broadcom – $767.7M
Hock Tan, CEO of Broadcom, received $767.7 million. Under his leadership, Broadcom has grown significantly through strategic acquisitions and organic growth, becoming a dominant player in the semiconductor industry.
Brian Armstrong, Coinbase Global – $680.9M
Brian Armstrong, CEO of Coinbase, earned $680.9 million. He has led Coinbase to become one of the largest cryptocurrency exchanges in the world, capitalizing on the growing interest in digital currencies.
Safra Catz, Oracle – $304.1M
Safra Catz, CEO of Oracle, received $304.1 million. Catz has been with Oracle since 1999 and has played a critical role in the company’s expansion and dominance in the software industry.
Brian Chesky, Airbnb – $303.5M
Brian Chesky, co-founder and CEO of Airbnb, earned $303.5 million. Chesky has overseen the company’s growth from a startup to a major player in the travel and hospitality industry.
Jon Winkelried, TPG – $295.1M
Jon Winkelried, CEO of TPG, received $295.1 million. Winkelried has been key in expanding TPG’s global investment footprint and managing its diverse portfolio.
Jeff Green, Trade Desk – $291.7M
Jeff Green, CEO of Trade Desk, earned $291.7 million. He has led Trade Desk to become a leader in the digital advertising industry, focusing on programmatic advertising.
Adam Foroughi, AppLovin – $271.3M
Adam Foroughi, CEO of AppLovin, received $271.3 million. Under his leadership, AppLovin has grown into a significant player in the mobile gaming and advertising technology sectors.
Nikesh Arora, Palo Alto Networks – $266.4M
Nikesh Arora, CEO of Palo Alto Networks, earned $266.4 million. Arora has been instrumental in transforming the company into a global cybersecurity leader.
The highest-paid CEOs in the world come from a diverse range of industries, with many leading smaller tech and financial firms rather than the largest corporations. Understanding the various components of CEO compensation, including salaries, bonuses, and stock options, is crucial for assessing executive pay.
As CEO compensation continues to rise, the disparity between executive pay and average worker salaries remains a significant issue. Addressing this gap will require ongoing efforts to ensure fairness and equity in compensation practices.
Ultimately, the goal is to create a compensation system that rewards executives for their contributions while promoting long-term success and stability for the company and its employees.
