May 4, 2026
Enthusiasm for CEO compensation is, well, less than electric these days.
The data speaks for itself. The average CEO pay has risen 1,094% from 1978 to 2024. It has risen only 26% for the average worker over the same period. (1)
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Utility CEOs, in particular, are seeing big pay bumps while utility bills climb for Americans who aren't seeing the same money in their pockets. Some Americans fear the gap will only widen further, sowing the seeds of major legislative pushback.
Companies are pumping the gas on CEO salaries
There's a stark difference in how utility CEOs and their employees are compensated.
The top-paid CEOs reviewed by the Energy and Policy Institute earned a combined $220 million in 2025, and the least-paid reaped over $16 million. (2) For context, the typical U.S. worker earns about $70,000. (3)
And the pay gap has widened over the last six decades. In 1965, a CEO could anticipate taking home $21 for every $1 earned by workers. In 2024, a CEO could anticipate taking home $281 for every $1 workers earned. These numbers include salary, bonus, long-term incentive payouts, and value of stock-related components that accrue after options or stock awards are granted. (2)
Of the 51 utility CEOs reviewed by the Institute, average compensation rose 16% from 2024 to 2025. Over half received a pay increase of over $1 million. (2) On the hook for the bill: Utility customers who already pay for bigger fuel and electricity bills.
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As utilities prices spike, CEOs are rewarded
CEOs may be incentivized to prioritize shareholders over utility customers, driving up energy costs for average Americans.
Think about it.
The cost of electricity for homes rose over 7% from February 2025 to 2026 (6), far outpacing inflation. (7) Electricity prices have risen 40% since 2021. (4) Average utility CEO compensation has risen even faster — 47 percent since 2018, outpacing inflation and the average wage growth for American workers. (5)
The Institute highlights return on equity (ROE) programs that tie CEO bonuses directly to the profits that utilities collect from customers. In other words: The higher the margin, the greater the benefit. This benefits shareholders, whose stock appreciates.
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One might point to inflation or the war in Iran as primary reasons for rising utility costs. But a quick look at profit margins of utility companies puts other factors into perspective, as well. The average margin was 12.8% from 2021 to 2024. Preliminary data suggests that number rose to 14.6% in 2025. (8)
Bringing CEO salaries to the ground
Some Americans are demanding changes in how CEOs are paid.
The Overpaid CEO Tax ordinance is a proposed ballot initiative in Los Angeles taking aim at CEO compensation. It seeks to limit CEO compensation by taxing companies whose CEOs earn 50 to 100 times their typical employee. (9) Only some LA businesses would be affected. (10) The initiative is gathering signatures for the November 2026 ballot. (11)
Other parts of the state are shifting the burden of executive compensation from customers to shareholders.
Maryland did just that in April 2026, linking executive pay to that of the chair of the Maryland Public Service Commission (currently $230,000). Meanwhile, Minnesota recently introduced a bill that capped what ratepayers would pay for executive compensation at the Minnesota governor's salary (currently $200,000). Neither bill limits what executives are paid overall. (5)
Americans who would like to pay less for CEO compensation — including luxuries like private jets — might keep an eye out for similar measures on the ballot.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Economic Policy Institute (1); Energy and Policy Institute (2),(5),(8); U.S. Social Security Administration (3); PowerLines (4); U.S. Energy Information Administration (6); U.S. Bureau of Labor Statistics (7); X (9); City of Los Angeles (10); Instagram (11)
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Cole Tretheway has been covering money for four years. He started as an intern at The Motley Fool Money, covering best-of credit cards, savings accounts, and financial products. He's since expanded into wholistic personal finances, including the psychology of money.
