Corporations Splurge On Top Execs While Skimping On Rank And File

Companies are spending much connected executive perks specified arsenic luxury relocations and backstage jets, underscoring a widening disagreement betwixt nan rewards offered to firm leaders and nan much humble salary gains disposable to overmuch of nan workforce.

Data from relocation services patient CapRelo shows nan mean costs of relocating a C-suite executive much than doubled betwixt 2021 and 2025, rising to arsenic overmuch arsenic $187,000 per move among its Fortune 500 and mid-market clients. By contrast, relocation costs for unit stayed mostly level astatine betwixt $21,000 and $25,000 successful nan aforesaid period.

Firms catering to elite workers, notably elder executives and labor pinch artificial intelligence expertise, person seen a clear pickup.

Compass Inc.’s relocation limb Cartus Corp. precocious launched a white-glove offering called Cartus Concierge aft seeing a “significant increase” successful request for high-touch relocations since 2022, Cartus Chief Executive Officer Matthew Tebbe said successful an interview. Services see handling location sales, arranging rentals and transporting art, wine, jewelry collections and pets.

“There is simply a immense push to pull nan champion AI talent and to clasp connected to [that] talent,” said relocation patient Sirva Worldwide, Inc. Chief Executive Officer Carlyn Taylor. Rich relocation packages tin thief seduce recruits to move.

For lower-level employees, relocation support is becoming much limited. Companies are progressively offering lump-sum payments aliases hiring locally to trim costs, relocation executives said.

Flying Private

Spending connected executive recreation has picked up. More than half of S&P 500 executives and their families usage firm jets for individual travel, pinch companies covering fuel, maintenance, unit and hangar costs. The median worth of nan perk jumped much than 40% from 2021 to almost $210,000 successful 2025, information from executive information patient Equilar shows.

Security costs person besides surged pursuing nan execution of UnitedHealth Group Inc. executive Brian Thompson. In 2025, much than a 3rd of S&P 500 executives received information perks, pinch nan median worth much than doubling to $130,000 since 2021, according to Equilar data.

Meanwhile, nan S&P 500 CEO-to-worker salary ratio reached 200-to-1 past year, nan highest since Equilar began search salary disparity successful 2018.

The opposition comes arsenic layoffs, hiring freezes and use cuts dispersed crossed industries from exertion to finance. Zoom Communications Inc. and Deloitte LLP some reduced paid parental leave. Signing bonuses are besides falling, pinch astir 20% of caller hires receiving them successful nan past six months, down from 28% a twelvemonth ago, according to ZipRecruiter Inc. data.

Squeezed Consumers

At nan aforesaid time, financial strain is becoming much visible for people. “Affordability” was mentioned connected Russell 3000 net calls much than ever successful nan first quarter, and executives person warned astir anxious and collapsed consumers.

S&P 500 CEOs saw their median salary emergence 5.9% successful 2025, Equilar information showed. Their companies’ net outpaced that pinch a 13% gain, according to information compiled by Bloomberg Intelligence. That’s putting unit connected companies to compete for apical talent done pay, Florian Ederer, a professor astatine Boston University’s Questrom School of Business, said, referencing world theories down soaring executive pay.

The widening spread betwixt executive rewards and worker salary whitethorn yet create risks for employers. Mercer, a Marsh & McLennan Cos. unit, recovered that 7 successful 10 workers said ostentation and marketplace volatility were expanding their financial stress, based connected a study of 4,500 US labor conducted betwixt September and October 2025.

Workers’ money worries tin travel backmost to bite. “When workers struggle to screen monthly expenses amid ostentation and marketplace volatility, and are very worried astir occupation security, they whitethorn beryllium little focused connected supporting nan organization,” said Adam Pressman, Mercer’s worker investigation and engagement leader.

Phua writes for Bloomberg.