Most Female CEOs Achieve Salary Increases

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Most of the women who run America’s biggest companies raised their wages last year, despite the pandemic hitting the economy and many businesses.

However, despite these benefits, the median salary of female CEOs actually fell in 2020, already in a small group, last year well-known women said they were leaving the position. This means that only a few salary changes helped skew the overall figure, highlighting the slow penetration of diversity in Corporate America’s sub-offices. Did.

Of the 342 CEOs who took part in the AP and Equilar S&P 500 compensation survey, only 16 were women. That’s down from 20 the previous year, with CEOs like Virginia Rometti of IBM leaving their jobs. This survey only concerns CEOs who have served at least two years in the company to avoid the distortion of large signing bonuses. The company must have presented a power of attorney between January 1 and April 30.

In this year’s survey, the majority of female CEOs experienced salary increases. In the survey, 60% of all male CEOs were compared to 81% of women (13 out of 16). However, Lynn Good, CEO of Duke Energy, reduced his compensation by almost 3% to $ 14.3 million. The median salary of female CEOs surveyed was set at $ 13.6 million last year because it sits in the middle of the salary level of female CEOs surveyed. Means.

This level shows that the same female CEO is down 1.9% from the median gained a year ago. And in this year’s survey, the median for all male CEOs was $ 12.6 million. That’s 5.2% higher than the median male CEO a year ago. The median survey overall was $ 12.7 million.

The number of women who took part in the survey fell last year, but experts say the change is happening because companies do not know women well and do not prepare more women for their jobs. roles. Yes.

“It’s a time-consuming process,” said Lorraine Hariton, president and CEO of Catalyst, a non-profit organization that seeks to empower women in the workplace. “But the reason is that we still face an unconscious and prejudiced culture and it takes time to build a pipeline of female CEOs.”

Lisa Su, CEO of chipmaker Advanced Micro Devices, tops the list with $ 27.1 million in compensation. This included a base salary of just over $ 1 million, a cash bonus of $ 2.5 million, and a stock and options bonus worth almost $ 23.5 million. AMD’s stock price nearly doubled in 2020 after the S&P 500’s best performance over the past two years.

A year ago, Sue was the CEO who received the highest salary of any man or woman in Equilar’s analysis, and had a salary package worth $ 58.5 million, mostly with $ 53.2 million in equity grants.

General Motors CEO Mary Rose was ranked second among women in a $ 23.2 million compensation package. And Kathy Warden, CEO of Northrop Grumman, was third, with a salary of $ 19.7 million.

Overall, many CEOs cut salaries last year due to a pandemic, but received more shares and other compensation. Payments to female CEOs followed a similar pattern, but it is difficult to draw conclusions due to the small sample size and small adjustments can skew the results.

There are signs of change, such as an increase in the number of women at the top of management. JPMorgan Chase recently placed two women in potential positions to replace CEO Jamie Dimon. The executive search company also said it is seeing growing interest from the company. In particular, research has shown that more diverse businesses lead to better results.

“It’s only a good deal,” said Jane Stephenson, vice president of organizational consulting firm Korn / Ferry. “It’s no longer ‘more women should do business.’ More diverse pipelines produce better results. The more companies prove that they can achieve this over time, the more active they are. Pressure is applied. “

Don Roman, Korn / Ferry’s senior client partner, hopes that not only will the evolution continue, but new leaders with different attitudes and perspectives will help shape the company’s progress. Roman and Stephenson said this applies not only to women, but also to leaders of various races. The executive suite has long been dominated by white males.

“It’s the law of supply and demand,” Stevenson said. “We have cultivated the demand side (in the boardroom), but now we have to cultivate the supply side.”

General Motors CEO Mary Rose was ranked second among women in a $ 23.2 million compensation package.



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