A good executive compensation structure is based on effective governance experiences and highly established policies that are closely aligned with the aims and goals of the company. CEOs usually have an annual salary and performance bonuses based on things like company growth, shareholder value, and company performance. This article talks about CEO compensation structure, incentives, and CEO salary: how much should you offer?

Components of the CEO’s Compensation Structure:

In this section we will look more closely at CEO compensation structures, and talk about some of the key components of the structure.

1. CEO’s Incentives

Short-Term Incentives

As a component of strategic strategy, board members assign CEOs a selection of short-term objectives. The basic compensation is intended to reward CEOs for fulfilling their short-term company goals. Boards establish their objectives based on a variety of variables, depending on the sort of organization and other circumstances.

Short-term objectives for CEOs may include boosting revenue or profitability, growing revenue, and expanding into new markets. Boards could also establish operational objectives, such as the implementation of a new company strategy, the creation of new goods, or the accomplishment of crucial project deadlines. The majority of boards pay the CEO’s base remuneration in cash.

There may be a two-tiered structure for the base payment, with a set compensation for the standard performance expectations. As an additional motivation for CEOs to increase their credibility achievements, boards may introduce a “stretch element” that pays CEOs for outstanding performance. Typically, the criterion for stretch incentives is relatively high, making it difficult for CEOs to reach the level.

Long-Term Incentives

CEO compensation schemes are mostly long-term incentives. Long-term incentives, as the name suggests, are awards for CEO accomplishment over the course of three to five years. As with short-term incentives, compensating committees scale up long-term incentive schemes with objective and stretch incentives.

Long-term incentives deliver the best value to shareholders, which is why corporations increasingly base CEO compensation on performance. Some Group reports that 31% of direct costs CEO compensation is performance-based, an increase of 5% since 2009. Typically, boards design long-term incentives to be paid to employees in the sense of stock-based remuneration, including stock options, stocks, performance-vested shares, or restricted stock.

The majority of boards establish their long-term incentives relative to total shareholder returns, return on assets, earnings per share, or other comparable metrics. Typically, CEOs earn long-term incentives together at the completion of their specified performance terms.

2. CEO Salary

Base Salary

Average salaries for the CEO vary depending on the kind of business, the CEO’s years of work experience, and other factors. Most boards of directors have an advisory board called the executive compensation board. This makes the proper base annual CEO salary that is usually paid every two weeks.

The federal tax law from 1993 says that a company can only deduct up to $1 million in cash compensation from its taxes. The average salaries for the CEO, the Finance Director, and the other highest-paid executives can’t be more than $1 million, regardless of how well they do their jobs. The limit also applies to the payments top management gets when they retire or resign.

3. Other Advantages of CEO

Employee Perks

Employee perks for CEOs are often similar to those provided to other salaried employees working for the company. Medicare, Social Security, paid holidays, workers’ compensation, paid vacation, unemployment insurance, and extended period off for sick pay or personal sabbaticals are all available to CEOs.

Furthermore, corporations may provide CEOs with life insurance, health insurance, and customized retirement plans. Unique retirement benefits may be exempt from pension requirements and federal tax, putting such funds at hazard if the company declares bankruptcy.

Perquisites

The term “perks” is derived from “perquisites,” which refers to supplementary income for a CEO that is not available to ordinary salaried staff. The purpose of perquisites is to reward executives for additional time commitments. The perks may include the use of a private plane or professional drivers. Executives may also receive special car park privileges, telephone networks in their houses, and home and workplace security.

Severance Packages

Severance packages offer payments to CEOs in the case of an involuntary or voluntary departure. Termination pay can play a significant role in attracting and retaining CEOs. In order to recruit excellent CEOs, selecting and governing committees sometimes use severance payouts as incentives. Severance compensation is a perk that may tempt a CEO prospect who is undecided about leaving a long-term employer out of apprehension that the transfer may not be successful.

CEOs get a contractual obligation to keep the company’s greatest interests ahead of their own. This is a widely accepted principle known as Responsibility for Care. Still, it becomes problematic when an acquisition or merger is imminent and might place the CEO’s position in peril as an incoming government takes over.

Some compensation packages consist of a change-in-control agreement, sometimes known as a golden parachute. This clause pays executives whose positions are eliminated as a result of an acquisition or a merger in which the acquiring business replaces them with its executives. Executive bonuses allow CEOs to keep contributing to the company’s success without fear of losing their primary income source.

How much should you offer as a CEO salary?

The company’s compensation package information can be found in its government data. The Securities and Exchange Commission’s (SEC) Form DEF 14A presents compensation summary statistics for a company’s CEO and other top-paid executives.

When analyzing the basic salary and performance incentive, investors favor companies that award a larger portion of remuneration as a bonus instead of the basic salary. The DEF 14A should explain how the bonus is calculated and what format it takes, including cash, options, or stock.

The summary charts also provide data regarding the CEOs’ share options holdings. The form reveals the number of stock option awards and the total number of grants CEOs received during the year. Also disclosed is the revaluation of stock options. Again, be reassured when you discover that CEOs possess a substantial amount of stock.

Conclusion

It’s a skill to figure out how much a CEO’s salary is. It’s challenging to figure out what the numbers represent, the CEO compensation structure, incentives, and how much you should offer. But investors should understand how pay systems can make top executives more or less likely to work in the company’s best interests.

Last Updated: March 04, 2026

If you aspire to be one of a company’s C-Level executives, you must be knowledgeable about the positions they hold. Among the C-Suite, the CEO and COO rank as the two most senior leadership roles. We’re all familiar with the CEO, but COOs tend to fly under the radar — primarily because not every organization needs one. In fact, almost 58% of Fortune 500 companies operate without a COO. However, as businesses grow more complex and global, the demand for strong CEO-COO partnerships is on the rise. But what exactly do these positions do? And how are they different?

What Are a CEO and COO?

A CEO, otherwise known as Chief Executive Officer, is the highest-ranking executive in a company or organization. As the top leader, the CEO holds ultimate responsibility for the company’s performance, growth, and long-term success. Companies have exceptionally high standards in appointing their CEO because this person will be leading the entire organization and has the final say in decisions that shape the company’s direction, profitability, and market position. The CEO typically reports directly to the board of directors and often serves as the company’s public face.

A COO, or Chief Operating Officer, is the second-highest-ranking executive after the CEO. Often referred to as the CEO’s “right hand,” the COO is responsible for translating the CEO’s strategic vision into day-to-day operational reality. While this person also holds significant responsibilities, they report directly to the CEO. Together, the CEO and the COO form a powerful leadership partnership — the CEO sets the destination, and the COO builds the road to get there.

How Do CEO and COO Differ? 7 Key Differences

Many people are still confused about the differences between the CEO and COO. To help you understand further what their key differences are, read below.

1. Responsibilities: Vision vs. Execution

The most fundamental difference lies in their focus areas. The CEO is responsible for the overall strategic direction of the company — crafting the vision, setting long-term goals, making high-stakes decisions, managing the company’s budget, and representing the organization to investors, stakeholders, and the public. The COO, on the other hand, takes that vision and translates it into actionable plans by overseeing daily operations, managing internal procedures, streamlining workflows, developing operational strategies, and ensuring every department is aligned with the company’s goals.

CEOs also focus on the company’s external connections and maintain strong relationships with investors, shareholders, and board members. In contrast, COOs concentrate more on the company’s employees, processes, and internal systems to ensure that operations run smoothly and efficiently. Put simply: the CEO decides what the company should do, and the COO figures out how to make it happen.

2. Authority and Accountability

No matter the responsibilities they hold, the COO is always answerable to the CEO. The CEO, holding the highest position in the company, has the final say in the company’s decisions and reports directly to the board of directors. However, it’s one of the COO’s key responsibilities to guide the CEO and offer advice, operational insights, and data-driven recommendations to help shape better decisions for the company.

In terms of accountability, given that the CEO is in charge of the company’s overall management, whether the company succeeds or fails ultimately falls upon the CEO. On the other hand, the performance of the company’s day-to-day operations — efficiency, productivity, and operational outcomes — falls on the COO. The best CEO-COO partnerships thrive when decision-making rights are clearly defined and both executives respect each other’s domains.

3. Salary and Compensation

Since the CEO holds the heavier responsibility of managing the entire company and its strategic direction, a bigger compensation package is typically given to them. According to the AFL-CIO’s 2025 Executive Paywatch, the average total compensation for S&P 500 CEOs in 2024 reached $18.9 million — a 7% increase from the previous year. The median total compensation was $17.1 million, according to the Equilar/AP 2025 CEO Pay Study. For private company CEOs, the median base salary was $325,000, as reported by Chief Executive Group.

COO compensation is substantial but generally lower than CEO pay. According to ERI Economic Research Institute, the average annual COO salary in the United States is approximately $340,000, while Salary.com places it higher at around $466,000 when factoring in total compensation. Glassdoor data puts the average at roughly $319,000, with a typical range between $239,000 and $446,000. COO pay varies dramatically by company size — small firms typically offer $225,000–$350,000 in total cash, while large public companies often exceed $650,000 plus significant equity packages.

4. Leadership Style and Focus

CEOs tend to adopt a visionary, big-picture leadership style. They focus on innovation, long-term strategy, company culture, and brand identity. Their approach is often outward-facing — engaging with investors, media, and industry peers to position the company for future growth.

COOs, by contrast, typically exhibit a more hands-on, detail-oriented approach. They focus on operational efficiency, execution, process improvement, and problem-solving within the organization. While the CEO inspires the team with where the company is heading, the COO ensures the team has the systems, resources, and structures to get there.

5. Educational Attainment and Qualifications

Both the CEO and COO positions require at minimum a bachelor’s degree, though many companies prefer candidates with advanced degrees. An MBA or a master’s in a related field is increasingly common among both roles — in fact, most COOs hold a master’s degree according to Glassdoor data.

Beyond formal education, the qualifications differ in emphasis. CEOs need extensive industry experience and a proven track record of strategic leadership, with strong skills in public speaking, corporate governance, and stakeholder management. COOs need deep operational expertise, strong analytical and problem-solving abilities, and experience managing cross-functional teams and complex systems. Both roles require exceptional communication, decision-making, and organizational skills.

6. Job Necessity: Does Every Company Need a COO?

People aren’t always familiar with the COO role because not every company has one. In many small to medium-sized businesses, the CEO is capable of handling both strategic leadership and operational management. Companies typically appoint a COO when the business has grown large or complex enough that the CEO needs a dedicated partner to manage internal operations.

However, there are growing reasons to expect more companies will utilize the COO position in the future. As businesses become larger and more complex with global operations, it becomes increasingly difficult for one person to oversee everything. Companies are also finding a strong correlation between firm performance and the presence of an effective COO. Additionally, the role is increasingly used for CEO succession planning — grooming the next generation of top leadership from within the organization.

7. Succession and Career Path

The COO role is often seen as a natural stepping stone to the CEO position. Many of today’s most successful CEOs previously served as COOs, gaining deep operational knowledge of the business before taking the top spot. For companies planning leadership transitions, appointing a COO can serve as a way to test and develop future CEOs while ensuring business continuity.

However, the transition from COO to CEO isn’t always seamless. Former COOs stepping into the CEO role must adapt to new responsibilities — from managing board relationships and becoming the company’s public face, to shifting from execution-focused thinking to strategic vision-setting. Effective succession planning accounts for these challenges and provides development opportunities well before the transition happens.

CEO vs. COO: A Quick Comparison Table

When Should a Company Hire a COO?

While not every company needs a COO, there are several clear signals that it’s time to bring one on board. Companies that are operationally intensive — such as those in manufacturing, logistics, airline, or automotive industries — often benefit greatly from a dedicated COO. Other indicators include rapid growth that is overwhelming the CEO’s capacity, a need for better internal process management, preparation for a leadership transition, or when a company is expanding into new markets or geographies that add operational complexity.

The best CEO-COO partnerships are built on trust, clear communication, well-defined decision rights, and complementary skill sets. A visionary CEO benefits from a pragmatic, execution-focused COO, and vice versa. Companies that invest in finding the right balance between these two leadership roles tend to see stronger operational performance and more sustainable growth.

Takeaway

We hope this article has clarified the key differences between the CEO and COO roles. Despite the fact that the CEO position ranks higher than the COO, both are essential to the success of any organization. The CEO sets the vision; the COO makes it a reality. Both must perform at the highest level for the company to thrive. Whether you’re building a startup or leading a multinational corporation, understanding the distinct contributions of each role is crucial for building an effective leadership team.

If your business is searching for an executive, CEO Worldwide can help. We specialize in international executive recruitment, placing top C-level talent — including CEOs and COOs — across 183 countries in as little as 7 to 10 days. Get in touch to learn more about our fast candidate shortlist delivery model.

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Last Updated: March 04, 2026

What do you believe the typical CEO’s salary is? Several million? Or even a few dozen million? If you’re like most Americans, you’re probably estimating way below the mark. That is because the majority of workers believe CEOs make around $1 million each year.

However, the true figure is often ten times higher — or more. In 2024, CEO pay at S&P 500 companies averaged $18.9 million in total compensation, a 7% increase from the previous year. Executive salary has become an increasingly controversial topic, with the CEO-to-worker pay ratio now standing at a staggering 285-to-1. Some high earners, such as Meta’s Mark Zuckerberg and former Twitter CEO Jack Dorsey, have famously accepted little or no salary at all.

So, how much does a CEO make in 2026? Read on to find out!

How Much Do CEOs of Startups Earn in 2026?

Early-stage businesses mostly have a limited budget, notably before raising major venture capital. Moreover, startup Chief Executive pay can be difficult to evaluate, especially when CEOs set their own salaries. But how much a startup CEO makes mostly depends on several factors. Here are some of them.

• Company Stage. CEOs of seed-stage startups usually earn less than those at Series A or Series B companies. In 2025, seed-stage CEOs averaged $147,000, while Series A CEOs earned $203,000.
• Funding and Cash Flow. Firms that have raised more capital or had already begun to generate a profit may afford to pay their executive more. The boom in AI startup funding has played a significant role in driving CEO salary increases in recent years.
• Location. Salary levels are often higher in locations with a high cost of living, such as San Francisco, New York City, or London. But this dynamic continues to evolve with the ongoing shift toward remote work and distributed teams.
• Industry. The industry you are working in will influence how much funding you can raise. For instance, AI and biotech founders typically command higher compensation than those in more traditional sectors like agriculture.
• Company culture. There are startup CEOs who choose to be paid a minimal salary to set a good example for the firm and foster a culture of lean efficiency.

So, after taking all that into account, how much does a CEO make at a startup? According to Kruze Consulting’s 2025 Startup CEO Salary Report — the longest-running startup CEO salary study based on anonymized payroll data from over 450 startups — the average startup CEO salary rose to $161,000 in 2025, up more than 14% from $141,000 in 2024. This rebound reflects an improved fundraising climate, with PitchBook projecting U.S. venture fundraising to grow to $90–110 billion by 2026.

When broken down by stage, seed-stage CEOs earned an average of $147,000 (up from $132,000), Series A CEOs earned $203,000 (up from $179,000), while Series B CEO salaries actually declined to $214,000 from $227,000, reflecting investor caution at later stages. Venture capitalist Peter Thiel’s famous estimate that a seed-stage CEO should earn between $100,000 and $125,000 still holds relevance, though the average has crept above that range.

ZipRecruiter reports the average income for a startup CEO position at around $82,000 per year, though this figure varies widely — from $54,500 at the 25th percentile to $100,000 at the 75th percentile, with the 90th percentile reaching $132,000.

How Much Does a CEO Make in a Small and Medium Company?

When checking a small or medium company’s Chief Executive pay, there are some important compensation components to keep in mind.

• Risk and Reward. Pay for performance is the common compensation approach that links executive pay to the firm’s success.
• Bonuses. CEOs usually get bonuses based on the company’s success to motivate them to work harder and make better decisions for investors. For private company CEOs, the median performance bonus in 2024 was $100,000.
• Stock Options. Companies give CEOs stock options to connect Chief executives’ financial interests with those of the shareholders.
• Equity Ownership. The median private company CEO owns approximately 9% of their company’s equity, valued at around $1.5 million.

So how much does a CEO in a small or mid-sized company earn? According to Chief Executive Group Research, the median base salary for private U.S. company CEOs in 2024 was $325,000, with an expected increase to around $335,725 by 2026. This is significantly lower than the $1.2 million median salary for S&P 500 CEOs.

However, when adjusted for inflation, private company CEO pay has actually declined by 2.8% since 2020. While average U.S. wages grew 26% from 2020 to 2025, CEO base salaries increased only 18% over the same period — meaning their purchasing power has effectively fallen behind. ZipRecruiter puts the average small business CEO salary at approximately $123,000 per year, ranging from $75,000 at the 25th percentile to $167,500 at the 75th percentile.

Large Corporations and Massive CEO Compensation Packages

Chief Executives of international conglomerates and large American enterprises continue to have the highest earnings among all CEOs. Even though there aren’t many people in this group, they dramatically shift the CEO pay scale toward the seven-figure or eight-figure level.

In 2024, the median total compensation for S&P 500 CEOs reached $17.1 million, a 9.7% increase from the previous year. The average was even higher at $18.9 million. Stock awards remain the dominant component, making up approximately 71.6% of the median pay package. In 2024 alone, the median value of stock awards rose 14.7% to $10.3 million.

One notable trend is the sharp increase in security-related perks, which surged 21.5% in 2024 to a median of $286,343 — largely in response to heightened safety concerns for top executives.

The highest-paid CEO in 2024 was Patrick W. Smith of Axon Enterprise, whose total compensation package reached $164.5 million — nearly twice as much as the second-highest earner, H. Lawrence Culp Jr. of GE Aerospace, who was awarded $87.4 million. Other notable packages included Starbucks CEO Brian Niccol at approximately $96 million and Apple’s Tim Cook at $74.6 million.

To put the CEO-to-worker pay gap in perspective: the Economic Policy Institute reports that from 1978 to 2024, top CEO compensation surged a remarkable 1,094%, while a typical worker’s pay grew just 26% over the same period. The median CEO pay ratio among S&P 500 companies stood at 192-to-1 in 2024.

Who Are the Famous CEOs with the Lowest Pays?

Not every CEO collects a massive paycheck. Some of the most well-known business leaders have famously accepted minimal salaries. Elon Musk, for instance, does not collect a traditional base salary from Tesla and instead relies entirely on performance-based stock options tied to ambitious company milestones. Meta’s Mark Zuckerberg took a $1 annual salary for several years starting in 2013 to focus on long-term platform growth.

Warren Buffett, CEO of Berkshire Hathaway, has maintained a modest $100,000 salary for decades despite being one of the world’s richest individuals. Similarly, Google co-founders Larry Page and Sergey Brin each took $1 salaries during their active tenures as executives.

Having said that, these individuals were already affluent before accepting such low compensation. Their true wealth comes from equity ownership and stock appreciation, not base salaries. Still, it sets a good example for the rest of the firm, fosters a cash efficiency culture, and demonstrates a founder who prioritizes the company before themselves.

Top Countries with the Highest Chief Executive Wages

The United States remains the best place to be working as a CEO, at least salary-wise. U.S. executives continue to dominate the global pay scale, often earning in the hundreds of millions annually when equity is included. Within the U.S., New York reclaimed the top spot for highest-paid S&P 500 CEOs in 2024 at $21.7 million median compensation, followed by Florida at $20.8 million and Indiana at $20 million. California remains home to the most S&P 500 CEOs at 43, followed by Texas (33) and New York (31).

Globally, CEO pay varies significantly by region. In Europe, median CEO compensation among top companies was estimated at around €4.15 million in 2024, with Germany leading, followed by Sweden and France. European packages tend to feature a more balanced mix of salary, stock, and ESG-linked incentives compared to U.S. packages, which lean heavily toward equity. Other countries with notable CEO salaries include the United Kingdom, Australia, India, Switzerland, Canada, the Netherlands, and China. Australia stands out for particularly high compensation in the mining, healthcare, and logistics sectors, while India’s executive pay continues to rise rapidly alongside the globalization of IT services.

CEO Pay by Industry: Where Do the Biggest Paychecks Go?

Industry plays a major role in determining CEO compensation. In 2024, the communication services sector led all S&P 500 industries for the sixth consecutive year, with a median CEO compensation of $25.2 million. Healthcare followed at $20.2 million, technology at $19.3 million, and financial services at $18.8 million. The utilities sector consistently ranks lowest, with median CEO pay of $12.2 million.

The arts, entertainment, and recreation sector posted the highest average CEO pay at over $35.2 million and the most extreme pay ratio at 1,924-to-1. Understanding these industry-level differences is crucial for anyone evaluating a CEO position or negotiating an executive compensation package.

Key Trends Shaping CEO Compensation in 2026

Several important trends are reshaping how CEOs are paid:

• Performance-based stock awards continue to dominate, representing about 60% of long-term incentive packages, with Relative Total Shareholder Return (rTSR) being the most common performance metric.
• The gender pay gap is narrowing. Among S&P 500 CEOs, the 27 women featured in 2024 earned a median total compensation of $20 million — 17.4% above the overall median. In the startup world, the gender pay gap has shrunk from $45,000 in 2020 to just $11,000 in 2025.
• Security perks are rising sharply. Following heightened concerns about executive safety, security-related perquisites have become a growing component of CEO compensation.
• Diversity-linked incentive measures have declined significantly — from 65% prevalence among S&P 500 companies in 2023 to 35% by 2025 — as companies shift focus toward financial and strategic performance metrics.

So, How Much Does a CEO Make and Is It Worth It?

From startup founders earning $161,000 to S&P 500 executives commanding $18.9 million on average, CEO compensation spans an enormous range. The answer to “how much does a CEO make” depends heavily on company size, industry, location, and stage of development.

What’s clear is that CEO pay continues to outpace worker compensation growth. Since 1978, top CEO pay has increased over 1,000%, while typical worker wages have grown just 26%. Whether this gap is justified by the experience, responsibility, and value creation required of top executives remains one of the most debated questions in modern business.

Looking to hire your next CEO? CEO Worldwide specializes in international executive recruitment, connecting businesses with top C-level talent across 183 countries in as little as 7 to 10 days. Contact us to learn more about our executive recruitment services.

Last Updated: March 04, 2026

Though the Chief Executive Officer (CEO) and the president perform different roles, people often mix them up. Many even believe that these two titles mean the same thing. That’s not the case, though — the two positions differ significantly in responsibilities, authority, and salary. In smaller companies, one person may hold both titles, but in larger organizations these roles are distinctly separated for good reason. So to remove the confusion, this article will give you an in-depth CEO vs. president comparison — updated with the latest salary data and real-world examples for 2026.

What Is a CEO?

At any given company, the CEO is the highest-ranking executive whose job is to make major corporate decisions and set the company’s long-term strategic direction. In other words, this role holds the highest level of authority within the enterprise and is often considered the face of the company. Think of leaders like Satya Nadella at Microsoft or Tim Cook at Apple — CEOs who shape not just their companies, but entire industries.

But with such great authority comes great responsibility. The CEO must also be ready to manage and oversee various operations and resources and act as a liaison between the corporation and its board of directors. The CEO is often a member of the board and may even be its chair.

CEO and the Board of Directors

As we’ve already said, the CEO is a mediator between the board of directors and the company. But what exactly does that mean? And what is the board’s role in the first place?

The company’s shareholders elect the board of directors, whose purpose is to decide on the corporate management policies and big-picture issues. Usually, the board is composed of inside directors (senior officers in the company) and outside directors (people not employed in the company). The CEO is often a board member too and may even be its chair.

But while other board members’ responsibilities include only making big-picture policies, the CEO also has to make sure to implement them in daily operations. That means they need to interact with the president and other managers and relay the board’s decisions. The CEO’s position can be terminated by the board if necessary — for reasons such as poor financial performance, failure to meet strategic goals, or loss of stakeholder confidence.

CEO’s Goals and Responsibilities

The CEO’s ultimate goal is to increase shareholder value by developing and executing long-term strategies. Short-term goals typically aren’t their main concern — they have the president and managers to deal with that. Small businesses are the exception to this rule, though. There, the CEO might have to take other, more hands-on roles as well.

Here is what a CEO’s responsibilities usually entail:

• Creating and implementing the company’s mission, vision, and long-term strategy
• Leading the company’s development according to long-term business plans
• Communicating with shareholders, investors, and the public on the company’s behalf
• Evaluating the president, vice presidents, C-suite executives, and managers within the company
• Assessing and monitoring risks, as well as ensuring to minimize them
• Driving revenue growth and long-term profitability
• Maintaining high social responsibility and corporate governance standards

Because the role is quite demanding, people who want to become CEOs need excellent communication and management skills, extensive business experience, strategic thinking ability, and strong decision-making capabilities. In many cases, CEOs are also the founders of the company. Otherwise, climbing that ladder might be more challenging — though not impossible, as many top CEOs have worked their way up through the ranks over decades.

CEO’s Salary in 2026

It’s difficult to say exactly how much a CEO is paid — after all, it largely depends on their company’s size and whether it’s publicly traded or privately held. For instance, S&P 500 CEOs earned a staggering $18.9 million on average in total compensation in 2024, according to the AFL-CIO. The median was $17.1 million, as reported by the Equilar/AP CEO Pay Study.

On the other end of the spectrum, CEOs of private and mid-sized companies earn considerably less. According to Chief Executive Group Research, the median base salary for private U.S. company CEOs in 2024 was $325,000, with an expected increase to around $335,725 by 2026. For smaller businesses, PayScale reports an average CEO salary of around $170,000, while ZipRecruiter puts the small business CEO average at roughly $123,000. With bonuses, stock options, and profit sharing, total compensation can be significantly higher across all company sizes.

What Is a Company President?

We’ve presented one side of our CEO vs. president comparison — now it’s time to take a look at the other. If we consider the CEO to be the highest instance of authority in the company, the president is the second in command.

Unlike the CEO, the president isn’t primarily responsible for the whole company’s strategic direction or its external relationships. Instead, their role is to translate the CEO’s vision into actionable plans, work towards achieving short-term company goals, and ensure that day-to-day operations run smoothly. In large corporations, the president is often in charge of a single business segment or division. A good real-world example is Microsoft, where Brad Smith serves as president, handling operations, legal matters, and key partnerships, while CEO Satya Nadella sets the company’s overarching vision and long-term strategy.

President’s Goals and Responsibilities

The president’s goal is to ensure that short-term strategies and plans are aligned with the long-term ones and carried out efficiently. Their main focus is maximizing operational performance and profit rather than setting the strategic vision, and ensuring that the company runs smoothly from day to day.

Of course, a large corporation can have several presidents in charge of various sectors with different goals — for example, a large media conglomerate might have a separate president for each TV network under its corporate umbrella. But in general, the president’s responsibilities are:

• Managing and overseeing day-to-day operations in the company
• Implementing the CEO’s long-term vision by focusing on short-term strategies and execution
• Leading a specific business unit, division, or sector of the company
• Managing vice presidents, department heads, and other senior managers
• Hiring, firing, and overseeing employee performance
• Creating and regulating operational budgets to ensure financial targets are met
• Meeting with the CEO and other executives and regularly reporting on the company’s operational health
• Overseeing quality control, compliance, and internal processes

Although a slightly less externally visible position than that of a CEO, the president’s role still requires unique expertise. To become a company president, you need to have excellent leadership, management, and communication skills, as well as extensive experience in the field. Strong analytical and problem-solving abilities are also essential, since presidents are often tasked with identifying inefficiencies and implementing solutions across the organization. Usually, presidents work their way up the corporate ladder for years before they finally get this position.

President’s Salary in 2026

Since they are the second in command within the company, presidents tend to earn less than CEOs — though the gap depends heavily on company size and structure. According to Glassdoor, the average total pay for a company president in the United States is approximately $268,000 per year, with a typical range between $201,000 (25th percentile) and $376,000 (75th percentile). Top earners can reach nearly $491,000.

Salary.com reported a median president salary of around $256,000 in 2025, while ZipRecruiter puts the corporate president average at approximately $187,000. The wide variation reflects differences in company size, industry, and location. Presidents in the pharmaceutical and biotech sectors tend to earn the most, with median total pay above $400,000, followed by IT and retail. The highest-paying locations include California, Massachusetts, and the Washington D.C. metro area.

CEO vs. President: Key Differences at a Glance

When One Person Holds Both Titles

In many small businesses and startups, the roles of CEO and president are combined into one position. The founder or owner often serves as both — setting the strategic direction while also managing day-to-day operations. This structure makes sense when a company is small enough that one person can reasonably oversee both functions, and it streamlines decision-making considerably.

However, as a company grows, the demands of each role increase. At some point, it becomes difficult for one person to focus on long-term strategy while also handling operational details. This is typically when companies choose to separate the roles, bringing in a dedicated president (or COO) to handle execution while the CEO focuses on vision and external relationships. The decision to split these roles is often a sign that a business has reached a new stage of maturity and complexity.

President vs. COO: How Do They Compare?

Another common source of confusion is the difference between the president and the COO (Chief Operating Officer). While these roles can overlap — and in some companies, one person holds both titles — they are technically distinct. The president is usually the legally recognized second-in-command and may oversee a business segment or division. The COO, by contrast, is specifically focused on the company’s operational efficiency and internal systems.

In practice, many companies use the titles interchangeably or combine them as “President and COO.” The key difference is that the president role often carries broader authority over business strategy within their division, while the COO is more narrowly focused on operational execution across the entire enterprise. The exact structure depends on the company’s size, industry, and organizational culture.

CEO vs. President: Final Thoughts

Though the CEO and president positions may seem almost identical, they differ in many important ways. CEOs set the vision, hold ultimate authority, and serve as the company’s public face — with compensation that reflects the enormous scope of their responsibility. Presidents translate that vision into reality through daily operations, team management, and execution, earning substantial but typically lower compensation.

Still, in some aspects, the CEO vs. president comparison shows real similarities. Both are leadership positions that require a highly skilled and motivated person with years of experience. Both are essential to a company’s success — strategy without execution is just a plan, and execution without strategy lacks direction. The most successful organizations are those where the CEO and president work in close partnership, each leveraging their distinct strengths.

Whether your company needs to hire a CEO, a president, or both, finding the right leadership talent is critical to growth and long-term success.

CEO Worldwide specializes in international executive recruitment, placing top C-level talent — including CEOs and presidents — across 183 countries in as little as 7 to 10 days. Contact us to learn more about our executive recruitment services.