A long-term pattern: CEO base pay continues to outpace board fees

An analysis covering the period 2006–2025 reveals a consistent pattern: CEO base pay has increased faster than board fees over time. In Sweden, the analysis shows that on Large Cap, the average annual increase in CEO base salary has been 26.1% higher than the increase in board fees. The result is a gap that has accumulated gradually over nearly two decades rather than being driven by individual decisions.

The divergence becomes more pronounced during periods of economic and geopolitical uncertainty. During the euro crisis, CEO base pay increased ten times more than board fees. During the COVID-19 pandemic, the increase was three times higher, and following Russia’s invasion of Ukraine, CEO base pay growth was almost twice that of board fees. Historically, board fees have been the more restrained component of remuneration during periods of stress, reinforcing their role as a stabilising element in governance rather than a market-driven one.

What the 2025 data shows: a temporary narrowing of the gap

Ahead of the 2025 AGM season, relatively significant increases in board fees were proposed across several Nordic markets. For Swedish Large Cap companies, average increases amounted to 9.1% for chairpersons and 8.4% for board members. These adjustments had a measurable impact: the gap between board fees and CEO base pay narrowed from 17.6% to 15.5%.

For the upcoming 2026 AGM season, this development provides a relevant benchmark. Indexed comparisons indicate that while the 2025 increases reduced the gap, a single year of higher adjustments is not sufficient to offset the cumulative effects of long-term divergence.

What this means for board remuneration

Entering the 2026 AGM season, the most recent data shows that board fees in the Nordics are in a phase of adjustment. At the same time, the remaining gap relative to CEO pay reflects almost twenty years of accumulated differences. This development, and its implications for long-term remuneration structures, will be further examined in the 2026 edition of About Pay.

Would you like to discuss what these developments mean for your board remuneration? Book a meeting with our experts.

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