Female CEOs are competitively paid, but greatly outnumbered

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 Mission Secondary volleyball coach Paul Thiessen cheering his team on during the high school AAA playoffs. (Contributed)
OKM volleyball coach a provincial award winner

Paul Thiessen receives BC School Sports Merit Award for 2021-22

The RCMP presence in Central Okanagan public schools is being reviewed by the board of education. (File photo)
RCMP presence welcomed in Central Okanagan public schools

Staff survey feedback overwhelmingly positive from students, staff and parents

Two e-scooters parked on the sidewalk along Water Street in downtown Kelowna on Monday, May 3. Scooters parked on walkways are causing accessibility issues for some people with disabilities. (Michael Rodriguez/Capital News)
Kelowna General Hospital clinicians observe increase in e-scooter injuries

A report is set to go to city council next week on how the e-scooter pilot has gone thus far

A rock quarry. (Markus Distelrath/Pixabay)
Regional district declines support of proposed Joe Rich quarry

The Regional District of Central Okanagan is one of the referral agencies for the application

(Pixabay photo)
Kelowna wants you to water its trees this summer

The city is asking residents to lend a hand and water city-owned trees amid drought-like conditions

Dr. Albert de Villiers, chief medical health officer for the Interior Health Authority. (Contributed)
Black Press Media Weekly Roundup: Top headlines this week

Here’s a summary of this week’s biggest stories from the Okanagan-Shuswap

Jane Linden
KCR: Volunteering keeps you active

Kelowna Community Resources shares stories of its volunteers in a weekly column

A person receives a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
More than 75% of B.C. adults have 1st dose of COVID vaccine

The federal government has confirmed a boost in the Moderna vaccine will be coming later this month

Airport ground crew offload a plane carrying just under 300,000 doses of the single-shot Johnson & Johnson COVID-19 vaccine which is developed by the Janssen Pharmaceutical Companies at Pearson International Airport during the COVID-19 pandemic in Toronto on Wednesday, April 28, 2021. THE CANADIAN PRESS/Nathan Denette
1st batch of Johnson & Johnson vaccines won’t be released in Canada over quality concerns

The vaccines were quarantined in April before they were distributed to provinces

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

The rainbow flag flies beside the Canadian flag outside the University of the Fraser Valley’s Chilliwack campus on June 26, 2020. Monday, June 14, 2021 is Flag Day, and also June is Pride Month. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of June 13 to 19

Flag Day, Garbage Man Day, International Panic Day all coming up this week

57-year-old Kathleen Richardson was discovered deceased in her home Wednesday, June 9, 2021. Her death is considered a homicide and connected to the slain brothers found on a Naramata forest road. (Submitted)
Condolences pour in for Kathy Richardson, Naramata’s 3rd homicide victim in recent weeks

Richardson was well liked in the community, a volunteer firefighter with a home-based salon

British Columbia-Yukon Community News Association’s 2021 Ma Murray Awards were handed out during a virtual ceremony on Friday, June 10. (Screen grab)
Black Press Media winners take gold at B.C. and Yukon journalism awards

Publications received nods in dozens of categories

Princeton GSAR responds 24 hours a day, 365 days a year. In 2020 the crew was called out 34 times, and members spent 721 hours on calls, and 683 hours training. Photo Princeton GSAR Facebook
Teen missing in Manning Park found after 24 hours

Young man spends night on mountain and survives with just a few scrapes

Most Read