Women CEOs Outearn Male Counterparts in 2024, But Gender Representation Remains Low

In 2024, female CEOs at large U.S. public companies surpassed their male counterparts in earnings, with median compensation for women in the S&P 500 reaching $16.4 million, compared to $15.6 million for men. Despite this pay gap in favor of women, the overall representation of female CEOs remains low, as women occupy only 7.9% of CEO positions in the S&P 500, a slight increase from 6.4% in 2020, according to a new report from The Conference Board, ESGAUGE, and FW Cook.

The report’s findings are based on proxy statements from Russell 3000 and S&P 500 companies, covering the period from January 1 to June 30, 2024.

Gender Pay and Representation

While women CEOs outpaced men in compensation, their presence in corporate leadership is still minimal.
Russell 3000: Female CEOs earned a median of $6.7 million, compared to $6.1 million for their male counterparts. Women accounted for only 6.9% of CEOs in the Russell 3000 index.

CEO Compensation Trends

CEO pay saw significant recovery, especially in larger companies:

• • S&P 500: Median total CEO compensation rose to $15.5 million, up from $14.4 million in 2023.
  • Russell 3000: Compensation increased to $6.1 million, up from $5.8 million the previous year.

Dana Etra, Managing Director at FW Cook and coauthor of the report, attributed the rebound in CEO compensation to the economy’s resilience and strong shareholder returns in 2023 and early 2024.

Incentive Pay Drives Growth

Performance-based stock awards were a major factor behind rising CEO pay:

• • S&P 500: Stock awards tied to performance increased by 7.5% compared to 2023.
  • Russell 3000: These awards grew by 9.1% year-over-year.

Matteo Tonello, Head of Benchmarking and Analytics at The Conference Board, pointed out that the surge in stock awards has outpaced other forms of compensation, potentially emphasizing long-term goals at the expense of short-term corporate objectives. He advised compensation committees to find a better balance between the two.

Equity-Based Compensation

Stock options, while declining in use, remain a key component of executive pay:

• • S&P 500: 40% of CEOs still have stock options in their compensation plans, though they account for 9.8% of total pay, down from 18.3% in 2011.
  • Russell 3000: Fewer than 25% of CEOs have stock options, with these accounting for 10.4% of total compensation, down from 16% in 2011.

Paul Hodgson, Senior Advisor to ESGAUGE, emphasized that stock options can still be an effective tool for aligning executive pay with long-term strategic goals if used appropriately.

Perks and Other Compensation

CEO perks have seen a sharp increase, particularly at larger companies:

• • S&P 500: The median value of perquisites reached $237,000 in 2024, up more than 60% since 2011.
  • Russell 3000: Perks increased slightly to $50,000, compared to $48,000 in 2011.

Umesh Tiwari, Executive Director of ESGAUGE, warned that the rise in CEO perks might invite increased scrutiny from stakeholders, calling for greater transparency to maintain trust.

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