Over the past decade, the Chief Human ResourcesOfficer (“CHRO”) has emerged as one of the most strategically influential rolesin the C-Suite. Once seen primarily as an operational function, today’s CHRO isadvancing organizational performance, shaping culture, and guidingorganizations through rapid workforce and technological transformation. Theevolution of the role, and the compensation that follows, reflects a clearshift: human capital has become a direct driver of enterprise value.
In this CLEARthinking, we combine quantitative data for proxy-reportedCHROs among Russell 3000 companies with qualitative insights from our advisoryexperience to illustrate the expanding strategic significance of the CHRO role.
As the CHRO role continues to expand in scope and influence, compensation committees are redefining how the position is assessed and rewarded. The role’s growing impact requires evaluation beyond traditional HR benchmarks, aligning compensation with broader measures of leadership, adaptability, and engagement. For compensation committees, the implications are clear:
Reevaluate the CHRO’s role as an enterprise leader,not just a functional head
Strengthen long-term alignment by reviewing LTI weighting relative to with other strategic roles
Broaden success metrics to include succession readiness, company engagement and adaptability
Looking ahead, the CHRO’s influence will deepen as organizations navigate AI-driven transformation, workforce evolution,and investor focus on human capital governance. The next generation of CHROs will serve as the bridge between people and performance, ensuring that culture,capability, and strategy advance together.
Target Total Direct Compensation
Analysis of the most recent proxy statements from Russell 3000 companies that disclose a CHRO among their named executive officers (“NEOs”) shows that median TDC in 2024 was ~$1.7M. It is worth noting that this data is generally reflective of the highest paid CHROs in the market given SEC rules require companies to disclose only their five highest paid executive officers.
CHRO compensation levels vary meaningfully both by company size and industry, reflecting differences in business complexity and workforce composition. Provided below is a summary of median TDC by size and a summary of median TDC by industry, with additional detail provided in the Appendix.
Company size amplifies distinctions in CHRO pay. Larger organizations typically have more complex workforce structures, global operations, and talent demands, factors that require broader strategic oversight and justify higher levels of CHRO compensation.
Compensation Elements & Pay Mix
LTI values vary considerably across the market, representing ~45% to ~60% of total direct compensation at the median,depending on company size.
Larger companies allocate a greater share of compensation to LTI, with equity often exceeding 50% of total pay compared to a more cash-heavy mix at smaller companies. As companies grow, and pay increases, a larger portion of compensation comes from at risk-compensation through LTI.
The Communication Services, Information Technology, and Health Care industries place the greatest emphasis on LTI, reflecting their position as the highest-paying sectors. At median, over 60% of TDC is delivered through LTI, underscoring that as compensation levels rise, companies increasingly deliver value through equity.
These patterns show that as company size and pay increases, compensation mix is delivered increasingly in equity rather than cash, additionally evidenced in the change in CHRO pay for 2024.
Change in CHRO Pay
CHRO pay in 2024 increased by ~10.0% from2023 with the largest increases being to LTI. This acceleration reflects the growing strategic value placed on leadership in workforce transformation,talent management, and organizational culture, all areas that have become central to enterprise success.
Of the companies in the sample, 131 have proxy disclosure of their CHRO’s compensation in both 2023 and 2024.Compensation increases are most pronounced among small and mid-sized companies, many of which are now formalizing and elevating the CHRO position to align with broader business strategy.
Implications for Compensation Committees
The CHRO has evolved from HR administrator to strategic architect, shaping culture,leadership, and organizational performance. Today’s CHRO drives work force transformation, human capital reporting, and board-level transparency, linking people strategy directly to long-term value creation. As financial pressures and investor scrutiny intensify, the CHRO’s ability to align culture,capability, and performance has become a differentiator in sustaining growth and organizational resilience.
As the CHRO’s strategic impact expands, compensation committees must ensure pay and responsibilities reflect enterprise value creation.
Aligning Pay with Strategic Impact
Evaluate scope and impact: Assess CHRO contribution alongside other enterprise leaders, not strictly by HR benchmarks
Strengthen long-term alignment: Review LTI weighting to ensure the CHRO’s rewards reflect enterprise-wide value creation and leadership continuity, consistent with other key executive roles
Broaden success metrics: Incorporate enterprise-aligned measures such as succession readiness,engagement, and organizational adaptability to CHRO incentive programs
StrengtheningSuccession and Talent Oversight
Engage early: Treat CHRO succession as a key enterprise risk with board-level visibility
Build bench strength: Develop senior HR leaders through exposure to board interactions and enterprise initiatives
Enhance competitiveness: Ensure compensation remains market-aligned, particularly when external demand or equity value is high
Looking Ahead
The next decade will further cement the CHRO as a central architect of enterprise strategy. As technology reshapes work and talent markets evolve, CHROs will lead in skills, culture, and leadership resilience, connecting human and financial performance. Boards must evolve compensation design and governance structures to reflect the CHRO’s growing influence on long-term success. The CHRO is no longer managing people, they are defining the future of work.
