Good morning!
Traditionally top HR leaders were primarily responsible for overseeing administrative and operational tasks, including managing payroll ensuring their company adheres to labor laws. But today, the role requires much more and includes tackling challenging, more strategic tasks such as CEO succession, recruitment, return-to-office plans, and upskilling workers. Because of this, CHROs are much more visible, taking boardroom positions, according to a new study from Equilar, a provider of executive intelligence solutions. They’re also gaining NEO (named executive order) status, meaning more HR leaders are officially becoming part of the C-suite.
However when it comes to compensation, CHROs aren’t seeing the significant increases in pay that one would expect with an increase in responsibilities—especially women.
The median total compensation for top CHROs now sits at around $2.4 million, a recent report from Equilar, a provider of corporate leadership data, found. Though a huge number, it grew only slightly from the previous year, up 0.1%. That said, it’s clear that CHROs are taking on larger roles as there’s been a large jump in those gaining the status of a named-executive officer (NEO), with a 192% increase since the start of the pandemic. They’re also getting more of a seat at the table as boardroom presence has increased roughly 22% since 2022. That said, female CHROs continue to dominate the boardroom by numbers, the study points out, with roughly 80% of CHROs being women.
Still, female CHROs haven’t seen the same pay gains as their male counterparts over the last year. The study found that female CHROs earned about 27% less than males in the same role. And while female CHROs saw a median increase of around 2% (from $2.758 million to $2.813 million) men experienced a whopping 61% pay jump (from $2.395 million to $$3,860 million).
That said, research analysts of the study point out that the majority of female CHROs on this list work for smaller companies, which tend to pay less than large companies and could contribute to the difference in pay. 80% of female CHROs were at companies with less than $20 billion in revenue, compared to only 35% of male CHROs.
Brit Morse
brit.morse@fortune.com
