Rick Smith tops 2024 CEO pay rankings with $165 million as executive compensation hits record high

Axon Enterprise CEO Rick Smith

Rick Smith, co-founder and CEO of Axon Enterprise, maker of Taser stun guns and body cameras, was the highest-paid chief executive in the S&P 500 in 2024, receiving a total compensation package worth $165 million. His pay far exceeded that of leaders at much larger firms, including General Electric’s Lawrence Culp Jr., Blackstone’s Stephen Schwarzman, and Apple’s Tim Cook.

Smith was the only CEO in the S&P 500 to surpass the $100 million mark in compensation this year, according to data compiled by The Wall Street Journal and MyLogIQ. His earnings came almost entirely from a performance-based stock award granted in May 2024, which ties his payout to Axon’s long-term market and operational performance. The same award structure is available to all Axon employees, offering the potential to triple the value of their compensation if aggressive growth targets are met — or reduce it to zero if they are missed.

CEO pay sets new records

Smith’s earnings reflect a broader trend of growing executive compensation. The median pay for S&P 500 CEOs rose to $17.1 million in 2024, up from $15.8 million a year earlier. Jamie Dimon of JPMorgan Chase ranked 23rd with $37.7 million, while Meta’s Mark Zuckerberg, who primarily receives compensation for personal security services, ranked 63rd with $27 million. Tesla’s Elon Musk, whose controversial pay package is tied up in legal proceedings, was the only CEO to report $0 in compensation.

Smith’s compensation package was built on a stock award that could rise in value depending on Axon’s performance over a seven-year period. Two of the company’s seven performance goals had already been met by March, according to company filings. Since the award was granted, Axon’s share price has surged by more than 160%, lifting its market capitalization above $50 billion and boosting the potential value of Smith’s shares to nearly $500 million.

“This program creates that startup kind of vibe,” Smith said in an interview. “I feel better about making a lot if I can also make zero.”

A rare high earner outside Big Tech

Smith’s 2024 payday is not his first in the nine-figure range. In 2019, when Axon was not yet part of the S&P 500, he received a $246 million package under a similar performance-based stock award. Over the past three decades, Smith and his brother Thomas, with whom he co-ran the company for 20 years, have transformed Axon into a global leader in law enforcement technology.

While a few CEOs outside the S&P 500 also crossed the $100 million threshold in 2024 — including Veeva Systems’ Peter Gassner ($172 million) and Shopify’s Tobias Lütke ($150 million) — this marks the fewest CEOs earning nine-figure compensation since 2016.

Shareholder scrutiny and market performance

Smith’s pay package was narrowly approved by shareholders, reflecting rising scrutiny over large executive awards. Nevertheless, Axon’s strong stock performance over the past year has made his compensation structure more defensible. The company’s tools are widely used by police departments, and demand for public safety technology has continued to drive growth.

As CEO pay continues to climb, analysts and investors alike are watching how companies tie executive rewards to long-term performance. Smith’s case — with his compensation highly leveraged on Axon’s future — could become a model or a cautionary tale, depending on how the company delivers in the years ahead.