The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) reports that S&P 500 executive compensation jumped 21% last year, marking the highest levels since the federation began tracking the data in the 1990s. When factoring in the $158 billion restricted stock plan awarded to Musk at Tesla, the average CEO payday balloons to $340.1 million. Labor leaders argue that boards are increasingly using these outlier figures as a reference point for their own executive packages.

While compensation committees maintain that these awards incentivize performance and align with shareholder interests, the market response remains fractured. Welltower, for instance, faced a sharp rebuke from investors after granting CEO Shankh Mitra $821 million in total pay, securing support from only 19% of shareholders in a non-binding vote. Goldman Sachs similarly faced scrutiny, receiving 71% support for a $118.9 million package awarded to David Solomon. As the gap between executive windfalls and the $69,770 mean annual wage for U.S. workers widens, labor officials suggest that the push for equity is driving union membership to 16-year highs.