The era of CEOs earning $100 million-plus annual pay packages is not entirely over, but it has become less common in recent years. Several factors have contributed to this shift:

1. Increased Scrutiny from Shareholders and the Public

Investor activism and public backlash against extravagant executive compensation have prompted companies to reconsider their pay structures. As the income gap between executives and average workers remains a hot-button issue, companies are under pressure to justify exorbitant payouts.

2. Regulatory Changes and Disclosure Requirements

Regulations like the Dodd-Frank Act have introduced more stringent rules on executive compensation. The requirement for say-on-pay votes, where shareholders can vote on executive compensation packages, has made boards more cautious about approving oversized pay deals.

3. Shift Toward Performance-Based Compensation

While hefty CEO pay packages haven’t disappeared entirely, there's been a noticeable trend towards performance-based compensation over guaranteed salaries. More companies are linking executive pay to measurable outcomes like stock performance, revenue growth, and other key metrics. As a result, while potential payouts can be huge, they’re harder to achieve and less frequently awarded.

4. Market Volatility and Economic Uncertainty

Economic challenges, particularly during the COVID-19 pandemic and subsequent market fluctuations, have forced companies to reevaluate compensation structures. Even well-established companies are exercising more caution with high-value packages, especially when investor returns are less certain.

5. Rise of Founder-Led Companies with Different Compensation Models

Many high-profile companies today are still led by founders who often take minimal salaries and rely on stock holdings for wealth accumulation. This model reduces the number of executives receiving massive annual payouts while concentrating wealth in stock-based holdings.

6. Changing Corporate Culture and Values

The push toward Environmental, Social, and Governance (ESG) principles has also played a role. Companies are increasingly aware of how executive pay impacts their reputation and brand image, leading them to adopt more modest and equitable compensation packages.

7. Recession Fears and Cost-Cutting Measures

Concerns about potential recessions and economic downturns have made boards more conservative about approving massive compensation packages. Companies are increasingly focusing on sustainability and cost-efficiency, which influences how executives are paid.

8. Decline in Stock Option Popularity

Stock options, once a common part of $100 million-plus packages, have lost popularity due to regulatory changes and market unpredictability. More companies are offering restricted stock units (RSUs) that vest over time instead, which can reduce the immediate valuation of CEO compensation.

So, Where Have They Gone?

While sky-high pay packages haven't vanished completely, they are less frequently reported due to shifts toward long-term incentives, performance-based pay, and shareholder scrutiny. Some CEOs continue to make massive fortunes, but it’s increasingly tied to stock performance and multi-year achievements rather than straightforward annual salaries.

Would you be interested in me breaking down the most recent $100 million-plus CEO compensation packages and how they’re structured differently than before?