Female CEO’s pay rose 26% in 2021, but ranks remain small – Times of India

(L-R): Common Motors CEO Mary Barra, president and CEO of Superior Micro Gadgets Lisa Su, Nasdaq CEO Adena Friedman

NEW YORK: Pay packages for the ladies who run S&P 500 corporations jumped in 2021 because the financial system recovered and inventory costs and earnings soared.
Median pay for the ladies occupying the nook workplace rose to just about $16 million, in response to the annual survey achieved by Equilar for The Related Press.
Nonetheless, consultants say there’s far more to be achieved to enhance gender range within the company ranks and shut the pay hole between women and men.
Jane Stevenson, vice chair, Board & CEO Companies at organisational consulting agency Korn Ferry mentioned whereas it’s good that ladies CEO’s pay rose, there may be nonetheless rather a lot to be achieved.
“I feel the hazard is to have a look at these instances of CEOs making extra their friends and see a message concerning the pay hole being closed – it is not,” she mentioned.
Of the 340 CEOs within the newest survey of S&P 500 corporations, 18 had been ladies, up from 16 in 2020. Earnings for S&P 500 corporations rose roughly 50% and the index gained about 27%. As a result of the majority of a CEO’s compensation is tied to such efficiency, their pay packages ballooned after years of principally moderating development.
Feminine CEO median pay rose 26.4% in 2021 to $15.8 million, with 15 of the 18 ladies CEOs within the survey seeing a rise. Median means half made greater than that degree, and half made much less. That was an even bigger bounce than that for male CEO’s median pay, which rose 17.7% to $14.4 million. The general median pay elevated 17.1% to $14.5 million.
The few ladies who’re CEOs of the most important US corporations usually earn more money than their male counterparts. However final 12 months they weren’t near the highest of the leaderboard for pay packages. Final 12 months, the highest incomes CEO was Peter Kern of Expedia Group, who obtained a pay bundle valued at $296.2 million.
Lisa Su of Superior Micro Gadgets was the best paid lady CEO for the third 12 months in a row, however her compensation valued at $29.5 million ranked simply twenty second within the survey. Su’s pay rose 9% from final 12 months. That was partly attributable to inventory and inventory choices awards, which totaled $25.1 million as AMD’s inventory surged 57%. Her base wage was about $1.1 million.
Simply behind her was Mary Barra, the CEO of automaker Common Motors, whose pay jumped 25% to $29.1 million, together with a base wage of $2.1 million and inventory and inventory choices awards value $18.5 million.
Jayshree Ullal, CEO of cloud computing firm Arista Networks, noticed the largest bounce in wage. Her pay greater than doubled to $16 million, principally attributable to inventory awards valued at $15.4 million. Arista’s inventory doubled in 2021 on robust demand for its cloud computing merchandise.
The variety of racially various CEOs is progressively growing too. In line with a survey of corporations within the S&P 500 and Fortune 500 by govt recruitment agency Crist Kolder, six had Black CEOs in 2021, 40 had Asian American CEOs, and 20 had Latinx/Hispanic executives main them.
The Equilar survey consists of solely CEOs who’ve served a minimum of two full fiscal years at their corporations, with a view to keep away from the distortions of huge sign-on bonuses. The businesses should have filed proxy statements between Jan. 1 and April 30.
The standards ignored some ladies named to the highest job previously two years. Not included are CEOs similar to Roz Brewer at Walgreens Boots Alliance, Jane Fraser at Citigroup, Linda Rendle at Clorox, Judith Marks at Otis Worldwide and Reshma Kewalramani at Vertex Prescription drugs.
If the ranks of ladies CEOs are to develop, there must be a greater pipeline to advertise ladies leaders, mentioned Korn Ferry’s Stevenson.
“Pay tells a narrative. We now have extra tales of some ladies getting forward,” mentioned Stevenson. “It is nice, nevertheless it doesn’t a system make. What we don’t have is a systemic path ahead for ladies, typically talking, in a sustainable manner, to be on the trail to prime roles and prime pay.”
Alison Cook dinner, a professor of administration at Utah State College who researches gender and variety within the office, mentioned there’s been a current push to get extra ladies on boards, moderately than in prime C-suite roles. That may assist in the long term, she mentioned.
“Hopefully the push into the board of administrators interprets into extra ladies attending to the C-suite pipeline and out there to be CEOs,” she mentioned.


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