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The Gender Gap in Executive Compensation

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  • Taekjin Shin

Abstract

While many studies have explored the issue of women’s representation among top management, little is known about the gender gap in compensation among those who reached the top. Using data on 7,711 executives at 831 U.S. firms, this study investigates social-psychological factors that explain the gender gap in executive compensation. Consistent with theories on social identity and demographic similarity effects, the gender gap in executive pay is smaller when a greater number of women sit on the compensation committee of the board, which is the group responsible for setting executive compensation. However, the presence of a female chief executive officer (CEO) is not associated with the compensation of female non-CEO executives working under the female boss. The findings highlight the need to study women’s representation on corporate boards.

Suggested Citation

  • Taekjin Shin, 2012. "The Gender Gap in Executive Compensation," The ANNALS of the American Academy of Political and Social Science, , vol. 639(1), pages 258-278, January.
    • Handle: RePEc:sae:anname:v:639:y:2012:i:1:p:258-278
    DOI: 10.1177/0002716211421119
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    References listed on IDEAS

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    1. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 75-99, Fall.
    2. Kulich, C. & Trojanowski, G. & Ryan, M. & Haslam, S.A. & Renneboog, L.D.R., 2010. "Who gets the Carrot and Who gets the Stick? Evidence of Gender Disparities in Executive Remuneration," Other publications TiSEM 52bce888-01d5-48a7-a674-0, Tilburg University, School of Economics and Management.
    3. Marianne Bertrand & Kevin F. Hallock, 2001. "The Gender Gap in Top Corporate Jobs," ILR Review, Cornell University, ILR School, vol. 55(1), pages 3-21, October.
    4. Main, Brian G M & O'Reilly, Charles A, III & Wade, James, 1995. "The CEO, the Board of Directors and Executive Compensation: Economic and Psychological Perspectives," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 4(2), pages 293-332.
    5. Craig Peterson & James Philpot, 2007. "Women’s Roles on U.S. Fortune 500 Boards: Director Expertise and Committee Memberships," Journal of Business Ethics, Springer, vol. 72(2), pages 177-196, May.
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    Cited by:

    1. Jorge Chica‐Olmo & Marina Checa‐Olivas, 2021. "Spatial impact of factors influencing the achievement of the Europa2020 employment targets," Papers in Regional Science, Wiley Blackwell, vol. 100(3), pages 633-649, June.

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