The Chief Human Resource Officer (CHRO) role continues to be critical for many organizations. Over the past 90 days alone, I have tracked and posted hundreds of CHRO appointments as part of CHROs on the Go
—a subscription that provides insights into hires, promotions, and resignations in the CHRO role.
As the influence and responsibilities of these and other CHROs continue to grow, this recently published report notes that HR executive compensation should accurately reflect this work and its impact on company performance and metrics.
To gain insight into how CHROs are compensated, HRO Today
has published its third CHRO Compensation Study. The 16-page report covers various insights informed by 1)
publicly available data on the Fortune 500, and 2)
CHRO compensation data on 175 senior HR executives from those companies, resulting in a valid sample of 35 percent. The researchers analyzed correlations between the senior HR executive compensation, company performance metrics (e.g., earnings per share (EPS), earnings before income tax, depreciation, amortization (EBITDA), etc.). While there are various insights in the report, one of them is that women CHROs in the Fortune 500 earn an average of nearly $500,000 more (total compensation) than men—an overall difference of 12.4 percent.
Page 4 of the report provides more information on this topic. Reviewing the entire report to get a holistic view of CHRO compensation versus focusing on any data point is recommended.