The latest study from agency directory DesignRush on CEO salaries is out; New Jersey, the business hub of the East Coast, is paying its CEOs four times higher than the national average.
CEO salaries in several states have ballooned, but this explosive 49% salary growth (the highest in the nation) proves that top executives in New Jersey are making the most of their careers, leaving their counterparts in other states in the dust. Is this sustainable growth, or is there a glass ceiling nearing?
Key Highlights:
- New Jersey: The highest growth in CEO salaries, reaching $449,370 in 2023
- Oregon: Exceptional growth, with CEO pay rising to $371,290
- North Carolina: Impressive increase, with CEO salaries climbing to $337,320
National Overview:
The national average CEO salary in 2024 stands at $258,900, reflecting a 12.23% growth over the past five years. However, this figure masks significant regional disparities in CEO wage growth. This list reveals that certain states have seen CEO salaries rise far above the national average, while others have experienced massive drops.
States with Highest CEO Salary Growth
1. New Jersey
New Jersey's CEOs are earning an average of $449,370 in 2023, marking a 49.07% increase since 2019. This growth rate is more than four times the national average, underscoring the state's high valuation of executive leadership.
2. Oregon
Oregon has seen a significant increase in CEO compensation, with salaries jumping from $252,291 in 2019 to $371,290 in 2023. This 47.17% growth rate is 3.8 times the national average.
3. Indiana
Indiana's average CEO salary rose from $192,077 in 2019 to $281,730 in 2023, a 46.67% increase. This growth is 3.82 times the national average, positioning Indiana as an executive haven.
4. North Carolina
North Carolina experienced a 37.34% increase in CEO salaries, with compensation rising from $245,604 in 2019 to $337,320 in 2023. This growth rate is 3.06 times the national average.
5. Wisconsin
Wisconsin's CEO pay increased by 37.12%, from $189,805 in 2019 to $260,260 in 2023. This growth is 3.03 times the national average, driven by state-specific economic policies.
6. New York
New York's CEO salaries grew by 26.41%, reaching $324,150 in 2023. As a major financial hub, New York's consistent growth is 2.16 times the national average, reflecting its position as a major economic hub.
7. Maryland
Maryland saw a 25.60% increase in CEO compensation, with salaries rising from $234,073 in 2019 to $293,990 in 2023. This growth is about 2.09 times the national rate.
8. Connecticut
Connecticut experienced a 25.25% increase in CEO salaries, growing from $275,592 in 2019 to $345,170 in 2023. Despite the state's negative average wage growth, executive pay has continued to rise significantly.
9. Kentucky
Kentucky's CEO wages increased by 24.73%, from $176,536 in 2019 to $220,200 in 2023. This growth is 2.03 times the national average, highlighting the state's substantial increases in executive compensation.
10. Hawaii
Hawaii's CEO salaries saw an increase of 24.32%, rising from $226,111 in 2019 to $281,110 in 2023. This substantial growth in executive compensation indicates a positive trend for high-level earnings in the state, even as other economic factors fluctuate.
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Check out other exclusive market insights brought by DesignRush
"Despite these numbers, most companies remain cautious, keeping a lid on salary inflation. However, the big question pops up: Is this level of growth sustainable? Such rapid salary inflation could indicate a thriving business climate, but it also poses potential risks if the underlying economic conditions don't support these high salaries in the long term, said Gianluca Ferrugia, General Manager at DesignRush."
Methodology
Data was found in the Occupational Employment and Wage Statistics (OEWS) survey provided by the Bureau of Labor Statistics (BLS). Data for CEO wages and average wages for 2019 and 2023 was extracted for each state to calculate the growth rates which were compared and based on which the ranking was made.
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