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Companies With Female CEOs Pay Out Significantly Higher Dividends

March 17, 2012   ·   0 Comments


Do female CEOs pay higher dividends? Do male CEOs really make more than female CEOs?

When comparing the top ten highest paid male CEOs versus the top ten highest paid female CEOs (in the United States), companies with male CEOs paid on average 2.45% in dividends, while female-led companies paid an average 2.98%. But the chart makes it more clear that female-CEO companies have higher dividends.

AT&T (NYSE:T) (male CEO Randall Stephenson) is currently at $31.63 (as of the closing bell Tuesday, March 13) and paid a most recent dividend of 5.6%, or $1.76. Reynolds American (NYSE:RAI) (female CEO Susan Ivey) is currently at $41.86, and paid a dividend of 5.3% or $2.24. The female CEO pays a higher dollar figure, but the male CEO pays 0.3% more.

It has often been said and proven that male CEOs are compensated considerably higher than their female counterparts. Again, a side by side chart comparison proves the point beyond doubt. Data taken from lists of the highest paid S&P 500 CEOs (which included no women), the highest paid CEOs, and a list of the highest paid female CEOs*.

Phillipe Dauman of Viacomm (NASDAQ:VIA) currently reigns as the highest compensated US company CEO. However, this chart was based on 2010 figures. His compensation package for the latest fiscal year amounted to $43.1 million, only half the $84.5 million in the previous shortened fiscal year when he took a $22.6 million one-time option award and a bigger one-time stock award. He is the highest-paid entertainment industry CEO of 2011 and one of the highest-paid people in the US. Even at the reduced number, he is still one of the top five CEOs, and earns more than $20 million than the highest compensated female CEO, Carol Meyrowitz of TJ Maxx (NYSE:TJX). Meyrowitz earns $19 million, including a cash salary of $1.6M, a cash bonus of $4M, and a stock package worth $12.6M. Meyrowitz has been Chief Executive Officer of TJX since January 2007, a director since September 2006 and was President from October 2005 to January 2011. She has been with TJX since 1987.

*There are higher paid female executives, that are not CEOs, that are not included on this list.

It has been proven previously that the higher a company’s gross sales does not equate to a higher compensation for male CEOs. However, it is interesting to note that not only do female CEOs make considerably less, but they helm companies with considerably lower gross income. 

The highest paid male CEO (still Phillipe Dauman of Viacom) brought in gross sales of $15 billion. The highest paid female CEO (still Carol Meyrowitz of TJ Maxx) only $2.4 billion. The two closest gross sales between male and female CEOs are Stanley Black & Decker (NYSE:SWK)‘s John Lundgren and Pepsi Co’s(NYSE:PEP) Indra Nooyi. Both companies have gross sales of approximately $10 billion. But Lundgren earns $33 million, while Nooyi earns $14 million. Notably, Hewlett-Packard (NYSE:HPQ) also earns $10 billion in gross sales, and the CEO, Catherine Lesjak only earns a cash salary of only $610,000, with a cash bonus of $3.5M, and stocks of $3.5M. 

Is there a correlation between the compensation of a female CEO and the gross sales of her company?

 

As was seen with the male CEOs, there does not appear to be a correlation between how much a female CEO is compensated and the company’s gross sales. 

This post originally appeared at The Motley Fool.

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