Artificial intelligence is helping drive CIO pay packages to new highs, The Wall Street Journal reported July 8.
CIO compensation is up 7.48% at large enterprises and 9% at midsize enterprises over the past year, according to data from consulting firm Janco Associates cited in the story, reflecting the desire for leaders with AI expertise.
"ChatGPT caught a lot of incumbent technology companies by surprise, and no organization wants to be left behind," Shaun Hunt, CIO of construction company McKenney's, told the newspaper. "This increased demand and limited supply of technology leaders is driving up compensation for these critical roles."
CIOs' median base pay increased to over $220,000 for large enterprises and neared $210,000 for midsize enterprises, with new CIO compensation packages ranging from $1.5 million to $1.8 million at those enterprises, according to the story.
This jump in pay also comes in response to CIOs gaining more leadership responsibility, with 63% of the tech leaders now reporting directly to the CEO, according to data from management consultant Deloitte cited by the Journal. "It goes back to that evolution of the CIO reporting to the CEO," Blue Shield of California CIO Lisa Davis told the news outlet. "Now the compensation has to come with it."