This Business News Story Was Uncovered By Us From: https://www.under30ceo.com/ceo-compensation-gap-c-suite-roles-out-earning-ceos/
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The role of CEO has traditionally been seen as the pinnacle of success, accompanied by hefty paychecks and prestige. However, a shift is occurring in corporate leadership dynamics, with C-suite executives like CFOs, CHROs, and general counsels now out-earning CEOs in terms of compensation. This changing landscape is driven by several factors, including the increasing power of employees, the growing politicization of corporate leadership, and the narrowing pay gap within the C-suite. In this article, we will explore the reasons behind this trend and its implications for aspiring executives.
The Changing Role of CEOsThe role of CEOs has become more challenging in recent years as employees assert their power and demand greater transparency and accountability from corporate leaders. Companies like Alphabet and Delta have witnessed employee protests against layoffs and controversial contracts, signaling a shift in the balance of power within organizations. CEOs are also facing increased scrutiny and the need to navigate complex political landscapes, as exemplified by the experiences of Ed Bastian at Delta, Bob Chapek at Disney, and Marc Benioff at Salesforce.The Rise of C-suite CompensationWhile CEOs have traditionally enjoyed substantial pay packages, the compensation of other C-suite executives has been catching up rapidly. According to a Fortune analysis, the pay of CFOs, CHROs, and general counsels in America’s largest companies has increased at an even higher rate than that of CEOs. This trend is driven by multiple factors, including the de-stigmatization of job-hopping, the need to retain top talent through stock grants, and the expanding responsibilities of C-suite roles.
Compensation Catch-UpA review of compensation data for CEOs and other C-suite executives at S&P 500 companies reveals a significant increase in the pay of CFOs relative to CEOs. For example, at Ford Motor Co., the CFO’s pay rose from 25% of the CEO’s pay in 2012 to 4… Read More
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