Rick Smith, the co-founder and chief executive of Axon Enterprise—the company behind Taser stun guns and body cameras—has officially become the highest-paid CEO in the S&P 500 for 2024, with a total compensation package valued at $165 million.

His earnings far exceeded those of leaders at some of the world’s largest and most influential companies, including Apple’s Tim Cook, Blackstone’s Stephen Schwarzman, and General Electric’s Lawrence Culp Jr. According to a comprehensive pay analysis by The Wall Street Journal and data firm MyLogIQ, Smith was the only executive in the S&P 500 to cross the $100 million threshold this year.

The majority of Smith’s pay was derived from a substantial performance-based stock award issued in May 2024. This compensation model ties his potential payout to Axon’s long-term market performance and internal operational targets. What sets this programme apart is that it is not exclusive to the executive suite—all Axon employees are eligible to receive similarly structured equity awards. If ambitious growth goals are met, the scheme could triple the value of their compensation. On the other hand, falling short could result in zero payout.

In an interview with The Wall Street Journal, Smith explained the rationale behind this model: “This programme creates that startup kind of vibe. I feel better about making a lot if I can also make zero.” The design is aimed at aligning long-term performance with reward, fostering a culture of shared accountability and high-stakes innovation.

Since the award was granted, Axon’s share price has soared by more than 160%, driving its market capitalisation past $50 billion. As of March, Axon had already met two out of seven of the performance goals tied to Smith’s compensation package, as disclosed in company filings. If all targets are achieved within the seven-year time frame, the value of Smith’s stock could climb to nearly $500 million.

Smith’s remarkable compensation is emblematic of a broader trend in executive pay. The median compensation for CEOs of S&P 500 companies reached $17.1 million in 2024, marking an increase from $15.8 million in 2023. The growth highlights the continued use of equity-heavy packages designed to reward long-term company performance over base salaries or bonuses.

Other top earners in 2024 included JPMorgan Chase CEO Jamie Dimon, who placed 23rd with a $37.7 million package, and Meta’s Mark Zuckerberg, ranked 63rd with $27 million—most of which covered personal security costs. In contrast, Tesla’s Elon Musk was the only CEO in the index to report zero compensation, due to the ongoing legal dispute surrounding his proposed $56 billion pay package, which is still awaiting court approval.