While millions of Americans struggle to pay their utility bills, the bosses of major U.S. energy companies are taking home millions more. A new review found that CEOs at top energy firms got average pay raises of $12.3 million in 2025. That’s a 16% jump in compensation across the industry.
The Energy and Policy Institute looked at financial documents from 51 top utility companies. They found that 38 of those firms handed out pay raises to their CEOs. The average CEO compensation reached $12.3 million annually after those increases.
At the same time, many customers are paying far more for their energy. Utility bills have jumped up to 40% in some parts of the country. Experts point to several reasons for the spike. Inflation has kept costs high. The war involving Iran pushed energy prices up. And the rapid growth of data centers has reportedly added more demand on the power grid.
The pay raises didn’t always match how well these executives actually did their jobs. Some CEOs got bigger paychecks even when their companies had major outages or missed performance goals. The Energy and Policy Institute said there’s a clear disconnect between results and rewards in this industry.
On top of their salaries, many utility executives also enjoy extra perks. These include access to private jets and company-funded condominiums. In many cases, customers’ bill payments help cover the cost of those benefits. Federal officials have described consumers as “shouldering the pain” from these rising costs. The total value of these perks goes well beyond the base salary numbers.
The Guardian published a full report on the findings. It used company financial records to show just how wide the gap has grown between executive pay and consumer hardship. Energy companies also shut off power to customers 13 million times in 2025, adding another layer of hardship for those already struggling with rising bills.
In Massachusetts alone, recent analysis suggests low-income families spend nearly 14% of their income on energy bills, with one in four low-income homes dedicating close to 25% of their earnings just to keep the lights on.
To put the numbers in perspective, a typical U.S. worker would need roughly 347 years to earn what these CEOs make in a single year. That comparison has drawn sharp criticism from consumer advocates and watchdog groups who say the energy industry’s pay practices don’t reflect the financial pain its customers are feeling.
