In the year 2023, more women have made significant strides in breaking the glass ceiling by securing top positions as CEOs in major corporations belonging to the S&P 500 list. However, the numbers still show a stark disparity compared to their male counterparts in the business world.
According to the AP’s latest annual compensation survey, out of the 341 CEOs included, a noteworthy 25 of them are women. While this marks the highest representation of female CEOs since the survey’s inception in 2011, the progress remains slow. The previous second-highest figure stood at 21 women in 2017, signaling a need for more significant advancements in female leadership representation.
Christy Glass, a sociology professor at Utah State University specializing in equity, inclusion, and leadership, pointed out the encouraging development of more female CEOs this year. However, she noted that overarching trends seem disheartening, with fluctuations in female leadership roles over the years. The cyclical nature of women achieving top positions only to see turnover shortly thereafter emphasizes the persistent challenges faced by women in corporate leadership.
Lisa Su, the CEO and board chair of chipmaker Advanced Micro Devices (AMD), retained her position as the highest-paid female CEO for the fifth consecutive year in fiscal 2023. With a total compensation of $30.3 million, Su’s package remained consistent with the previous year, mainly driven by substantial stock awards amounting to $21.8 million. Leading AMD since 2014, Su’s exceptional leadership aligns with the company’s success amidst the increasing demand for AI technologies.
Among the top five highest-paid female CEOs, notable names include Mary Barra of General Motors, Jane Fraser of Citigroup, Kathy Warden of Northrop Grumman Corp, and Carol Tome of UPS Inc. Their achievements reflect the progress made by women in the C-suite, although challenges persist in achieving wage parity with their male counterparts who continue to dominate the highest echelons of corporate compensation.
The median pay for female CEOs increased by 21% to $17.6 million, outpacing the 12% rise seen in male CEO compensation, which averaged $16.3 million. Despite these improvements, the top-earning male CEOs like Broadcom’s Hock Tan, who earned $161.8 million predominantly through stock awards, exemplify the enduring gender pay gap in corporate America.
The phenomenon of the glass cliff, as identified by researcher Christy Glass, underscores the structural barriers women face in being appointed CEOs, often in crisis situations. This trend perpetuates a cycle of disadvantage for female leaders, highlighting the importance of addressing systemic issues to ensure equitable opportunities for women in executive roles.
Overall, while the increase in female CEOs is a positive step towards gender diversity and inclusion in corporate leadership, sustained efforts are needed to overcome the existing challenges and foster a more equitable environment for women in the business world.
