When I used to work at The Boston Globe, the business writers used to pitch stories on how much certain CEOs were paid, especially one who worked for quasi-public companies like a utility.
The point of these articles was to show how overpaid the CEOs were relative to their lowest-level workers.
I would always raise my hands at the meeting and ask about the value the CEO delivered. Some CEOs, maybe many, are not worth the money they get paid while others are a bargain based ion the revenue they have created.
Perspective matters.
When looking at the latest grocery CEO pay numbers. Walmart, Target, Kroger, and other supermarket executives continue to command multi-million-dollar compensation packages, often tied to stock awards and performance incentives.
This article breaks down the top-paid grocery CEOs of 2024 and examines how their pay aligns with company performance.
CEO pay packages have changed
CEO pay has been changing. What was once a big number plus a bonus has become more rooted in performance-based compensation,
“The WTW Global Executive Compensation Analysis Team (GECAT) has analyzed CEO pay trends across the S&P 1500. The fundings suggest that, while target total direct compensation (TTDC) growth has slowed, the design and delivery of incentive pay are becoming more nuanced — and, in some cases, more complex — in response to continued volatility and as companies seek to attract, retain and incentivize top tier talent,” WTW's website reported.
How CEOs get paid has changed, but they are getting paid more.
Related: Target has a problem (it's coming from inside the building)
“While target pay growth may have leveled off, actual pay outcomes in 2024 tell a more nuanced story. Earned pay rose 17% at the median, a meaningful increase buoyed by earned incentive growth. Much of this can be attributed to strong payouts under long-term performance plans, many of which captured performance measured from 2022 to 2024, a period of significant market recovery,” WTW added.
Retail CEO pay has followed a similar path although some struggling company CEOs, like Target's Brian Cornell, are still being paid very well.
Brad Barket/Getty Images for Fast Company
Top 10 grocery and supermarket CEO compensation packages in 2024
- Walmart, Doug McMillon:
- Total Compensation: $27.4 million
- Details: Primarily from stock awards valued at over $20 million, with a $1.5 million base salary.
- Target, Brian Cornell
- Total Compensation: $20.4 million
- Details: Stock awards of $16 million, base salary of $1.4 million, and a bonus of approximately $785,000.
- Kroger, Rodney McMullen
- Total Compensation: $15.6 million
- Details: Base salary of $1.4 million, stock awards of $10.6 million, and no incentive compensation due to resignation.
- Albertsons, Vivek Sankaran
- Total Compensation: $15.2 million
- Details: $11.5 million in stock awards, $1.5 million base salary, and over $2 million in non-equity incentive plan compensation.
- Sprouts Farmers Market,Jack Sinclair
- Total Compensation: $12.2 million
- Details: Base salary of over $1.2 million, non-equity incentive plan compensation of $5.4 million, and stock awards of nearly $4.2 million.
- Grocery Outlet, Robert J. Sheedy Jr. –
- Total Compensation: $9.5 million
- Details: Included more than $4.5 million in payments related to his departure in October.
- Weis Markets, Jonathan Weis
- Total Compensation: $9.3 million
- Details: Base salary of $1.3 million and non-equity incentive plan compensation of over $7.6 million.
- United Natural Foods, Inc. (UNFI), Sandy Douglas
- Total Compensation: $7.6 millio
- Details: Over $5 million in stock awards, base salary of just under $1.1 million, and $1.5 million in non-equity incentive plan compensation.
- Total Compensation: $5.8 million Details: $1 million base salary, $1.5 million in non-equity incentives, and $3.2 million in stock award
All data is courtesy Grocery Dive
Jim Lanning from Ingles Market came in at $5.8 million for #9 while Ahold Delhaize's Frans Muller made $6.8 milllion.
Honorable mention: Kevin Murphy of Publix earned $3.4 million in 2024, placing him just outside the top 10)
2025 retail CEO pay outlook
Over the years, executive pay structures have evolved significantly, driven by economic shifts, regulatory changes, and shareholder expectations. In 2025, compensation trends for CEOs are expected to undergo further transformation, reflecting new corporate priorities and market realities,” according to JRG Partners.
The biggest change is seeing pay tied more to performance.
“Companies are reassessing their executive pay strategies to align with performance, sustainability, and long-term growth. CEO Compensation Trends 2025 indicate a stronger emphasis on pay-for-performance models, equity-based rewards, and ESG-linked incentives,” JRG added.
A 2025 CEO pay trends overlook
- Slower Growth: While specific data for 2025 is limited, early reports suggest a moderation in the growth of CEO compensation, with some analyses indicating a slowdown in total direct compensation increases.
- Continued Emphasis on Equity-Based Compensation: Equity-based compensation is expected to remain a significant component of CEO pay packages, aligning executive incentives with long-term company performance.
- Focus on ESG Metrics: There is a growing trend to incorporate Environmental, Social, and Governance (ESG) metrics into executive compensation plans, reflecting increased shareholder and public interest in corporate responsibility.
- Increased Scrutiny: Boards and shareholders are anticipated to maintain or intensify scrutiny of executive compensation practices, balancing the need to attract and retain top talent with concerns over pay equity and corporate governance.
“The rise of shareholder activism and economic volatility has forced companies to rethink their approach. In 2025, businesses are increasingly adopting variable compensation structures that reward long-term performance over short-term gains,” JRG shared.
