Bloomberg Law for HR Professionals is a complete, one-stop resource, continuously updated, providing HR professionals with fast answers to a wide range of domestic and international human resources...
Nov. 17 — Chief human resources officers are increasingly paid like and given the same level of respect as other executives, consultants say.
“Anecdotally, where we see compensation headed for HR execs at larger companies is increasing exponentially for those HR execs that are strategic partners to the CEO—those HR executives that come to the table with proven data points to demonstrate the value that HR can bring to the business,” Amy Dufrane, CEO of the HR Certification Institute, told Bloomberg BNA in a Nov. 17 e-mail. “It is a fact that those execs see a higher salary than those HR professionals that are tactically focused.”
The top HR executives at S&P 500 companies were given median total compensation of $1.6 million in 2015, slightly down from $1.7 million in 2014, according to a report released Nov. 2 by Equilar, a provider of board intelligence solutions, and Allegis Partners, an international executive search firm.
“The CHRO is viewed as a peer and compensated as a peer to other C-suite members,” Mike Bergen, managing partner at New York City-based Allegis Partners, told Bloomberg BNA Nov. 17. They are being measured by the same standards and awarded compensation packages based on company performance, he said.
Certain industries like health care and technology, where change is especially rapid, will pay a premium to CHROs who are adept at managing it, he said. In those industries, total compensation for CHROs rose from $1.53 million to $2.311 million and from $1.712 million to $1.96 million from 2014 to 2015, the report said.
“In terms of skill set, we’re seeing a shift toward HR leaders bringing more general management skills,” such as developing an HR brand for the company and having “technology chops,” Bergen said.
“HR leaders used to be invited into the room only for executive compensation and succession planning discussions,” but company board members are now inviting them to stay the entire time, because “talent risk is so important,” he said.
To contact the reporter on this story: Martin Berman-Gorvine in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Tony Harris at email@example.com
The report can be downloaded by visiting http://www.allegis-partners.com/insights/white-papers/hr-executive-pay-trends-2016.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)