Female CEOs are competitively paid, but greatly outnumbered

Of the 340 companies included in the analysis, only 19 were run by women

The few women who are CEOs of the largest U.S. companies typically make more money than their male counterparts but aren’t close to the top of the leaderboard for pay packages.

The median pay package for female CEOs in the 2018 fiscal year was $12.7 million, compared with $11.2 million for men, according to data analyzed by Equilar for The Associated Press. That reflects a raise of $680,000 for the same group of female CEOs from a year before, versus a raise of $540,000 for the men. Median means half were larger, and half were smaller.

Still, of the 340 companies included in the analysis, only 19 were run by women. Plus, there is not a single woman on the overall list of the top 20 most highly paid CEOs. The top earner there — Discovery CEO David Zaslav — earned a pay package worth almost six times that of the most highly paid female CEO — Mary Barra of General Motors. She ranks 30th on the list overall.

READ MORE: Women have ‘legitimate claims’ for justice, equality: Pope

Barra tops the list of female CEOs with a pay package valued at nearly $21.9 million, unchanged from the prior year. Lockheed Martin CEO Marillyn Hewson came in second with a compensation valued at $21.5 million, up 7% from the prior year. And General Dynamics CEO Phebe Novakovic rounded out the top three with a compensation package worth $20.7 million.

The AP’s CEO compensation study, conducted by Equilar, includes pay data for 340 executives at S&P 500 companies who have served at least two full consecutive fiscal years at their respective companies and filed proxy statements during the traditional period of Jan. 1 to April 30.

While women enter U.S. companies at roughly the same rate as men, experts say their ranks grow thinner at each step up the corporate ladder. There are a number of reasons for this, including unconscious bias, lack of mentorship, people hiring in their own image and more. This leaves few women in the pipeline to take the top seat when the time comes.

Catalyst, a non-profit organization that focuses on women in business, said that only three times in history has a woman succeeded another woman as chief executive at a public traded company.

“The rarity of these women, they are so exceptional,” said Alison Cook, a professor of management at Utah State University who researches gender and diversity in the workplace. “Not that some of these men aren’t exceptional also … but these women have to be so incredible to have made it this far.”

READ MORE: France takes torch passed by Canada, will focus on gender equality at G7 summit

Comparing men’s pay to women’s as a group is a bit unfair, statistically speaking. The sample size is much smaller for women so any change among that group has an outsized impact.

Lorraine Hariton, CEO of Catalyst, said that while the numbers appear discouraging year over year, gains are being made in the long run.

Women are becoming slowly more prevalent in CEO roles and pay is gradually becoming more commensurate. For example, the recently released list of Fortune 500 companies includes more women than ever before, 33, but largely due to appointments made in the past 12 months, according to Fortune magazine. And women are also incrementally becoming more common on the boards of companies, which helps usher in more women to executive leadership.

“It’s a gradual trend in the right direction but much slower than what we would like to see.” Hariton said.

Hariton and Cook also both agree that the recent #metoo movement has helped raise awareness of the issue and brought more men into the conversation, in some cases spurring companies to look more closely and address their own practices.

Additionally, Hariton said research shows consumers increasingly expect companies and CEOs to act on environmental and social issues, including diversity.

“Companies need to address this not just because it is the right thing to do but to remain competitive,” Hariton said. “Consumers are demanding it.”

Sarah Skidmore Sell, The Associated Press

Like us on Facebook and follow us on Twitter.

Just Posted

Okanagan-Shuswap Weather: Heat, sun and a chance of thunderstorms for Father’s Day

Morning pancake breakfasts and fishing derbies across the region will see sun, showers may follow.

Dedicated Girl Guide leader recognized with Sovereign’s Medal for Volunteers

Maryann Brock has volunteered with Girl Guides for 37 years

$30,000 donation for outdoor classroom in Salmon Arm to honour beloved teacher

Funds from Armstrong Regional Co-op to go to the Shannon Sharp Learning Circle

Okanagan-Shuswap weather: Sun and heat continue Saturday

Environment Canada forecasts highs of 30 C throughout the Okanagan Saturday

New South Shuswap community park proposed for Blind Bay

Regional district proposes the purchase of 9.5 acres now known as Centennial Field

10 facts about Father’s Day

Did you know that the special day for dads was first celebrated in 1910?

South Okanagan pharmacy restricted from dispensing opioid treatment drugs

B.C. College of Pharmacists alleges Sunrise Pharmacy dispensed treatment drugs against rules

Police seek two suspects and car after stabbing in Kelowna

The stabbing took place on Friday evening on Wilson Avenue. It sent one man to hospital.

Okanagan pitcher tosses second no-hitter of season

Vernon’s Jarod Leroux has two no-nos in his last three starts for the BCPBL’s Okanagan Athletics

B.C. VIEWS: When farmland protection doesn’t protect farmers

Secondary residences aren’t mansions, families tell Lana Popham

Letter: Writer argues biosolids will damage water, soil

Turtle Valley residents lost the first battle with Nutrigrow/Arrow Transport when our… Continue reading

PacificSport and SportHealth team up to subsidize physiotherapy for members

The partnership is touted as the first of its kind in Salmon Arm

Bombers down B.C. Lions 33-23 in season opener

Former Lion Andrew Harris leads Winnipeg with 148 rushing yards

Summerland ready for dry summer conditions

Province has declared Level Two drought, but Summerland has not increased watering restrictions

Most Read