From Yahoo Finance: 2025-06-27 13:03:00

Average CEO salaries rose by 9.7% in 2024 to $17.1 million due to stock market and profit increases. Meanwhile, the median employee earned $85,419 with a 1.7% raise. Both employees and CEOs are projected to see salary increases in 2025, with employees expecting a 3.5% raise on average.

Offering raises to employees is crucial for retention and productivity. High turnover rates can lead to decreased productivity and revenue loss, emphasizing the importance of fair compensation. The average annual expenditure was $77,280 in 2023, highlighting the need for higher salaries to cover emergencies and investments.

Receiving a significant raise boosts morale and financial stability for employees. Paying fairly and equitably is essential for attracting and retaining top talent. Experts recommend understanding your market value, quantifying your impact, and negotiating beyond just base salary for a comprehensive total compensation package.

Total compensation packages are crucial for employees’ long-term financial security. Benefits like 401(k) matches and equity participation can significantly impact net worth over time. Compensation isn’t just about immediate income but also the support for future growth and stability.

Read more: How the Average Employee Raise Compares to the Average CEO Raise