Published April 5, 2026 · Updated annually
Which CEOs Are Overpaid? A Data-Driven Analysis
An overpaid CEO is one whose compensation is not justified by company performance. Using SEC proxy data from 209 public companies, we identified executives who receive top-tier pay packages but deliver bottom-tier results — earning our lowest Pay-for-Performance Grades (D and F).
How We Define "Overpaid"
We do not define overpaid by raw dollar amount. A CEO earning $50M who doubles the stock price is arguably worth it. Instead, we look at the pay-performance gap: executives whose compensation consistently exceeds what their results would justify.
Our Pay-for-Performance Score grades CEOs on total shareholder return (40%), revenue growth vs. comp growth (30%), say-on-pay vote (20%), and peer comparison (10%). CEOs with D or F grades have a meaningful disconnect between what they earn and what they deliver.
High Pay, Low Performance
| Company | CEO | Total Comp | Grade | Pay Ratio |
|---|---|---|---|---|
| Apple | Tim Cook | $666.7M | D | 7,125.243:1 |
| Microsoft | Satya Nadella | $551.3M | D | 6,276.903:1 |
| Alphabet | Sundar Pichai | $203.9M | D | 3,713.689:1 |
| Berkshire Hathaway | Greg Abel | $203.1M | F | 7,630.604:1 |
| Walmart | Doug McMillon | $138.0M | D | 2,047.004:1 |
| Broadcom | Hock Tan | $115.2M | D | 1,014.161:1 |
| Netflix | Ted Sarandos | $101.6M | D | 991.888:1 |
| AbbVie | Robert Michael | $81.4M | D | 1,464.796:1 |
| Oracle | Safra Catz | $81.3M | D | 1,238.452:1 |
| T-Mobile US | Mike Sievert | $62.0M | F | 871.661:1 |
| Chevron | Mike Wirth | $50.9M | D | 670.737:1 |
| Merck | Rob Davis | $47.0M | F | 1,326.68:1 |
| Danaher | Rainer Blair | $37.4M | F | 1,023.118:1 |
| Coca-Cola | James Quincey | $36.6M | D | 327.71:1 |
| Applied Materials | Gary Dickerson | $34.3M | F | 1,326.102:1 |
Common Patterns Among Overpaid CEOs
After analyzing hundreds of proxy statements, several patterns emerge among executives with poor pay-performance alignment:
1. Mega Stock Grants During Down Years
Some boards award massive equity packages after poor stock performance, arguing the CEO needs "retention incentives." This rewards the executive for presiding over declines and creates misaligned incentives — the stock only needs to partially recover for the CEO to profit handsomely.
2. Low Say-on-Pay Scrutiny
Companies where institutional investors are passive or where insiders control significant voting shares tend to have less accountability on pay. Our data shows that companies with say-on-pay approval below 70% are three times more likely to have D or F pay-performance grades.
3. Peer Benchmarking Inflation
Boards select "peer groups" of companies to benchmark CEO pay. By choosing peers with higher-paid CEOs (often larger companies), compensation committees create upward pressure. If every board targets the 75th percentile, median pay ratchets up relentlessly.
What Shareholders Can Do
If you own stock in a company with a poor pay-performance grade, you have options. Vote against the say-on-pay proposal. Submit shareholder proposals demanding pay-for-performance reforms. Engage with the board through investor letters. And use data from sites like ours to make informed proxy voting decisions.
Explore any company's full compensation profile on our rankings page or look up your holdings to check their pay-performance grades.
Frequently Asked Questions
The most overpaid CEOs are those with the largest gap between compensation and performance. Our Pay-for-Performance Score identifies these by comparing total comp to shareholder returns, revenue growth, and peer benchmarks. Check the table above for current F-grade executives.
Yes. The Dodd-Frank Act requires regular "say-on-pay" votes where shareholders can approve or reject CEO compensation packages. While these votes are advisory (non-binding), low approval rates pressure boards to make changes. You can also submit shareholder proposals or vote for board members who prioritize pay reform.
Research is mixed. Some studies show that extremely high CEO pay correlates with lower future returns and greater risk-taking. Others find that equity-based pay aligns CEO incentives with shareholders. Our data shows that pay-performance alignment (the grade, not the dollar amount) is what matters most.
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