Nashville-based entrepreneur Sherry Deutschmann built her company, LetterLogic, into an enterprise with $40 million in revenue before selling it to a private equity firm in 2016. As the firm’s founder, Deutschmann went seven years without giving herself a raise, and paid herself the relatively low amount of $225,000, even after the company crossed $30 million in sales. Her board encouraged her to finally take a pay hike. She says “Absolutely, it’s the truth” that men she knows in comparable positions paid themselves more. And she wonders now if this hurt her.
Survey: Female Founders Are (Finally) Paying Themselves More
Their salaries are typically lower than male founders’.
June 26, 2018
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Summary.
Prior studies have found that female founders are reluctant to pay themselves as much as their male counterparts choose to pay themselves. But recent research shows this may be changing. In an annual survey conducted by EY and the Women Presidents’ Organization (WPO), a global education and advocacy group, WPO members and participants in EY’s global Entrepreneurial Winning Women program reported in 2018 that they planned to give themselves solid raises in the coming year. About 40% of respondents predicted a 1%–20% hike, and more than 5% were planning an increase of 20% or more. Whether it’s a reflection of robust economic growth, a redefinition of their own worth, or both, this change suggests that more female founders are ready to put themselves on even footing with their male counterparts, at least when it comes to measuring their own worth.