In the ever-evolving world of corporate leadership, aspiring executives are reevaluating their aspirations to become CEOs as traditional notions of prestige and astounding pay shift. The allure of the CEO role, once considered the "holy grail," is waning, replaced by a new perspective that factors in challenges, politics, and remuneration.
Increasingly, the role of a CEO has become more demanding as employees gain influence and voice their concerns. Instances like Alphabet's employee protests over layoffs and controversies surrounding corporate contracts highlight the complexities modern CEOs face. Disney's Bob Chapek, Delta's Ed Bastian, and Salesforce's Marc Benioff have encountered heightened political pressures, demonstrating that the CEO role is no longer solely about strategy and profit.
Surprisingly, the allure of CEO pay has diminished, with other top-level executives reaping larger compensation increases. The disparity in compensation has shifted in favor of roles like Chief Financial Officers (CFOs), Chief Human Resources Officers (CHROs), and general counsels. Fortune's analysis of Equilar CEO and C-suite executive compensation data from S&P 500 companies reveals that CFO salaries have risen from 34% of the CEO's pay in 2012 to 44% in 2022 for the top 10 Fortune 20 companies.
The trend is consistent across other C-suite positions. The general counsel's pay has almost doubled as a percentage of the CEO's income over the past decade. This shift is most prominent in large publicly held companies, where executives in positions like CFO, CHRO, and others have experienced substantial compensation growth.
Several factors contribute to this changing landscape. Job-hopping at the executive level has lost its stigma, prompting individuals to leverage new opportunities for increased compensation. Stock grants that vest over time have become a retention strategy, bolstering compensation packages for key executives. Moreover, changes in job responsibilities, such as CFOs reporting to IT heads, have led to higher pay for roles that have expanded in scope.
Less attention paid to non-CEO C-suite compensation has also played a role in the disparity. While CEOs often face scrutiny for their pay packages, the compensation of their subordinates is often under the radar. This dynamic allows companies to adjust salaries without attracting public attention.
Beyond financial considerations, avoiding the limelight has its merits. Recent CEOs have faced physical threats and public backlash for expressing their views on sensitive issues. By staying under the radar, high-ranking executives can steer clear of such controversies.
As the landscape of corporate leadership evolves, aspiring executives are increasingly considering their options from a more balanced perspective. The CEO role is no longer an automatic dream job as challenges and pay disparities come to light. Amid these changes, individuals are making more informed decisions, evaluating the costs and benefits of climbing the corporate ladder, and choosing the roles that align best with their aspirations and values.