Who won the CEO pay race in 2023?

CEOs of smaller tech and financial firms are surprisingly outperforming their counterparts at industry giants in terms of compensation, according to a new study by C-Suite Comp, a leading data analytics firm specialising in executive pay.

This finding, based on an analysis of nearly 4,000 publicly traded US companies, challenges the traditional notion that leadership at the helm of the largest corporations translates to the highest compensation packages.

TPG CEO Jon Winkelried leads the list of highest-paid leaders with a total compensation package of nearly $199 million, followed closely by Harvey Schwartz of the Carlyle Group, who received $187 million in 2023.

C-Suite Comp's report relied on two primary metrics: "total compensation granted" and "compensation actually paid." The former includes a CEO's annual salary, bonuses, perks, and stock options, while the latter considers fluctuations in stock value, which can greatly affect the overall compensation package.

Their findings on "total compensation granted" revealed that CEOs at smaller firms were the top earners in 2023. Transparency plays a role here - a 2022 SEC rule now requires companies to disclose projected CEO earnings by accounting for potential gains or losses in stock options, a major component of executive pay packages.

However, when it comes to "compensation actually paid," the landscape shifts. Here, Elon Musk of Tesla tops the list, raking in a staggering $1.4 billion in 2023. This reflects Tesla's meteoric rise under Musk's leadership. Shareholders recently approved a new $44.9 billion pay package rewarding him for transforming Tesla into the world's leading electric vehicle manufacturer and significantly boosting its market value.

The report also highlights a glaring gender gap in executive compensation. Only two women make the C-Suite Comp list – Sue Nabi of Coty and Safra Catz of Oracle. While Nabi ranks among the highest-paid female CEOs with $149 million in total compensation granted, Catz takes the top spot for women based on "compensation actually paid" at a staggering $304 million.

C-Suite Comp's findings challenge conventional views on CEO pay, highlighting an evolving landscape where smaller firms rival industry giants in attracting top talent. The report emphasizes the need for transparency in executive compensation and underscores the growing trend of pay-for-performance in leadership remuneration.