In December, General Motors selected Mary Barra as CEO, making her the first-ever woman to hold the position at an auto manufacturer. On Jan. 15, she took the reins of the company.
At Lantern, it is news we applaud and cheer. We believe that for far too long, senior-level recruiters, search committees, and other HR professionals have missed out on some incredibly talented candidates by not hiring more female leaders. And we’ve said before that women should break free from traditional career paths and opt for ones that position them well for the C-suite. (In fact, ironically, but not surprisingly, Barra’s first job for GM came in the C-suite: as an executive assistant for then-Chairman and CEO Jack Smith.)
While we recognize that Barra’s hire represents yet another crack in the proverbial glass ceiling—and what seems to be its largest fissure yet—we know there is much work that remains to bridge the inequality gap in corporate America. Barra’s selection shines a light on the disparities that exist at Fortune 500 companies for female leaders.
Consider this: Even though one in two workers at Fortune 500 companies is a woman, only one in eight executive officers is a woman. The issue is even more complicated than that, as the problem spans across compensation and enfranchisement at startup firms as well. Consider that:
- Across industries and roles, women in business currently make 77 cents to the dollar compared to their male counterparts. In C-suites, that figure rises to 88 cents.
- Top female leaders at S&P 500 companies earn an average salary of $5.3 million—nearly 20 percent less than their male counterparts.
- When looking at the five top-paid C-suite leaders at each S&P 500 company, women account for only 8 percent of these positions.
- On average, men will earn $4,600 more annually than their female counterparts in their first post-MBA position.
- Only 3 percent of all startups are helmed by women.
It’s been said that “As GM goes, so goes the nation.” When it comes to hiring an increased number of women in the C-suite, we can only hope that the dictum holds true here, as well.
