A recent Equilar report, which includes commentary from HR Policy, found that the growing responsibilities of top HR executives have had a direct impact on their pay packages. In fact, performance awards contributed to at least 27.9%, and in some cases up to 37.1% of the average pay structure for HR executives. This underscores the growing role of CHROs and the impact of the role on the organization’s growth and success.
Digital transformation will redefine the role of HR. Automation, AI, and data analytics will continue to be integral to HR processes as companies seek to attract and retain top talent. HR Policy’s Ani Huang discussed AI in the field of HR, noting the “future of HR lies in the harmonious integration of AI technology and human expertise to create more agile, efficient, and employee-centric HR practices.”
“Boards are certainly leaning in on CHRO director talent.” Ms. Huang highlighted that many skills CHROs hold, including a people-centric perspective, organizational development, and stakeholder engagement, are skills companies seek as they look for new directors. These insights and a deep understanding of the employee experience has resulted in the number of Russell 3000 board members with CHRO experience to double since 2020.
Key findings of the report include:
- HR executive compensation saw an increase across 9 of the 10 sectors, with compensation decreasing in the financial services sector;
- Compensation for HR executives at energy companies saw a 32.1% increase;
- The number of women in top HR executive positions has increased 77.8% since 2019; and
- While women experienced a 36.3% increase in compensation compared to 29.1% for men, women still received lower median compensation and men received significantly higher value-based performance awards.