There is a gradual increase in the number of women reaching top positions in S&P 500 companies, but they still remain significantly outnumbered by men.
Out of the 341 CEOs included in the AP’s annual compensation survey, 25 are women. This represents the highest number of women on the list since the survey started in 2011. However, there has been little change in the numbers over the years, with the second-highest count being 21 women in 2017.
The survey, conducted by Equilar for The Associated Press, focuses on CEOs of S&P 500 companies who have completed at least two fiscal years with their companies and whose proxy statements were filed between January 1 and April 30, 2024.
Christy Glass, a sociology professor at Utah State University specializing in equity, inclusion, and leadership, expressed that while the increase in female CEOs is a positive development, the overall trends are concerning.
“We may observe a spike in women CEOs in a particular year,” Glass stated. “However, a year or two later, we often witness significant turnover.”
Lisa Su, the CEO and board chair of Advanced Micro Devices, was the highest-paid female CEO in the AP survey for the fifth consecutive year in fiscal 2023, earning a total compensation of $30.3 million, consistent with her previous year’s package. Su’s ranking improved from 25 to 21 overall.
Su’s compensation included a base salary of $1.2 million, a performance bonus exceeding $1.4 million, and the majority coming from $21.8 million in stock awards.
Since becoming AMD’s CEO in 2014, Su has led the company in Santa Clara, California, which is among the many businesses tapping into the growing demand for AI technologies to enhance operations. In 2023, AMD’s stock price surged by 127%.
Other top-paid female CEOs include Mary Barra of General Motors with $27.8 million, Jane Fraser of Citigroup with $25.5 million, Kathy Warden of Northrop Grumman Corp. with $23.5 million, and Carol Tome of UPS Inc. with $23.4 million.
Some prominent female CEOs were not included in the survey due to their recent appointments or their companies filing proxy statements outside the January-April timeframe, such as Julie Sweet of Accenture and Sue Nabi of Coty Inc.
The median compensation for female CEOs rose by 21% to $17.6 million, surpassing the 12% increase for male CEOs whose median pay reached $16.3 million.
However, the highest-paid male CEOs still earn significantly more than their female counterparts. For instance, Broadcom CEO Hock Tan received $161.8 million, primarily from stock awards.
One contributing factor to the gender imbalance is the concept of the “glass cliff,” as per Glass’s research, which shows that women are more likely to be appointed as CEOs in struggling companies.
“It’s like taking one step forward and two steps back,” Glass commented. “Women often get the chance to lead when the organization is in crisis…This puts them at a disadvantage from the start.”
