Executive Perks: The Growing Disparity in Corporate Rewards
Companies are investing more in executive perks like luxury relocations and private jets, highlighting a growing disparity in rewards between corporate leaders and the rest of the workforce. Data from CapRelo shows that the average cost of relocating a C-suite executive has more than doubled from 2021 to 2025, reaching up to $187,000 per move for Fortune 500 and mid-market clients. In contrast, relocation costs for staff have remained relatively stable at $21,000 to $25,000 during the same period.
There has been a noticeable increase in services catering to elite workers, particularly senior executives and employees with expertise in artificial intelligence. Cartus Corp., a relocation arm of Compass Inc., introduced a high-end offering called Cartus Concierge in response to a surge in demand for personalized relocations since 2022. This service includes managing home sales, arranging rentals, and transporting valuable items like art, wine, jewelry, and pets.
To attract and retain top AI talent, companies are offering generous relocation packages to entice recruits to move. However, lower-level employees are receiving more limited relocation support, with companies opting for lump-sum payments or local hires to cut costs. Executive travel spending has also increased, with over half of S&P 500 executives and their families using corporate jets for personal trips, covered by companies.
Following the tragic murder of UnitedHealth Group Inc. executive Brian Thompson, security costs for executives have surged. Equilar data shows that more than a third of S&P 500 executives now receive security perks, with the median value doubling to $130,000 since 2021. The CEO-to-worker pay ratio in the S&P 500 hit 200-to-1 in 2025, the highest since tracking began in 2018.
As companies implement layoffs, hiring freezes, and benefit reductions, financial strain is becoming more apparent for many individuals. Executives are increasingly discussing "affordability" on earnings calls, and concerns about anxious and financially strained consumers are rising. S&P 500 CEOs saw a 5.9% increase in median pay in 2025, outpacing their companies' earnings growth of 13%.
The widening gap between executive rewards and worker pay could pose risks for employers in the long run. Mercer's survey of 4,500 US employees found that seven in 10 workers are experiencing increased financial stress due to inflation and market volatility. When employees struggle to meet expenses and feel insecure about their jobs, their focus on supporting the organization may diminish, potentially impacting overall productivity and engagement.