As more startup businesses slowly recover from the rapid decline in revenue caused by the pandemic, female CEO are paying themselves less than their male counterparts, according to the latest report from New York City-based accounting firm Cruise Consulting.
The report analyzed 250 seed and venture-funded startups in the US and found that the pay gap between female and male startup CEOs widened four times in 2022 compared to the end of 2019. The difference clocks in at $20,000 in 2022, up from $5,000 in 2019.
Compared to 2021, 2022 saw an increase of only $1,000 annually for female CEOs, while male CEOs saw a $5,000 increase in salary. For every dollar in men’s salaries, female CEOs earned:
- 2022: $0.86
- 2021: $0.89
- 2020: $0.69
- 2019: $0.96
The study also noted a startling difference in how male and female CEOs have responded to the pandemic. On average, female startup CEOs have cut their pay by 30 percent during the coronavirus outbreak (bringing salaries from $101,000 in 2020 to $138,000 in 2019), while male CEOs have increased themselves (upping their pay in 2020). increased to $146,000, up from $143,000 in 2019).
“As the gender pay gap persists, it is important for companies to set an example of equal pay from the top,” said Tanya Janssen, co-founder of Compensation Management Software Solutions Company. becom“Women CEOs, and all women at any level, regardless of role, deserve fair pay,” tells Inc.
In addition to underpaid, women leaders are underrepresented in the workplace – even worse The collapse of the child care sector and the inaccessibility of after-school programs due to the pandemic. the risk of mothers leaving the labor force Lost wages and economic activity slashed working hours to $64.5 billion a year to cover lost wages and responsibilities of care in economic activity, according to a report by the Center for American Progress, a public policy think tank in Washington, DC.
There are three ways to determine what to pay yourself.
Talk to Other CEOs in Your Industry
Find fellow business leaders in your industry and see what everyone else is doing. One way to network with other CEOs is by participating in forums and community organizations. love the organization fourth floor, Women’s Founders CollectiveAnd million dollar woman Help women leaders connect and exchange values. Members also share information such as where to get board seats and next investment opportunities. Don’t hesitate to ask questions to other business leaders, as they may have questions for you as well.
arm yourself with data
“In general, CEOs aren’t always what they say about their salaries — especially in large corporations where salaries are often set by the board,” Jensen says. Additionally, in the startup sector, women-founded companies get justice. 2.3 percentage of total VC funding, making it more difficult for women to lead high-revenue companies, and thus paying themselves more.”
While negotiating with the board for a higher salary, it is important to be equipped with data. free online resources like US Bureau of Labor Statistics And Pew Research Center Income Calculator Provide statistical earnings reports categorized by industries, sectoral parameters, your business’s stage of growth and how it is performing.
“For women executives who have more control over their own pay, armed with data about what other CEOs make in their industry, and providing an argument for why they should, their pay should be reduced to their own. It’s important to raise to the same level as the male counterpart,” Janssen says. “Fighting for equal pay even at the executive level sets a positive precedent for women in other positions advocating for their fair pay.”
don’t underestimate yourself
Women have a tendency to underestimate themselves. Avoiding this behavior starts with believing in yourself and practicing self-confidence. Simply rehearsing confident statements and phrases can also help people gain courage.
“Don’t be afraid to try. Look for opportunities, take your place at the table, share your thoughts and comments,” Vanessa Jacobson, CEO of Blow Dry Bar, North America’s largest blow dry bar franchise, told Inc. in March. . ,
Jacobson explains that as a leader, you have to prove to yourself that you are capable, so you have the power to face challenges, to be respected, and to encourage others to listen. Once that happens, maybe you’ll realize your worth.