GENDER PAY GAP
Striking differences in bonuses for male and female executives
An academic study of senior executive pay has uncovered striking disparities in bonus payments between men and women, according to a report in The Observer newspaper.
The “glass cliff” research by a team from Exeter University and Tilburg in the Netherlands, discovered not just a 19% gap in total pay, which was even larger than expected, but also that the bonuses received by women hardly varied no matter how company performed.
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As Simon Caulkin, The Observer’s management editor explains: “Basically, women's bonuses change very little however well or badly the company does. Men, on the other hand, are punished much more for poor performance but hugely more rewarded for good.”
Want to know more?
Title: “In Tarzan v Jane, Tarzan gets the bigger bonus”, by Simon Caulkin, Observer, 14 September 2008.
Availability: To read The Observer article online visit www.guardian.co.uk/business/2008/sep/14/executivesalaries.women.
Abstract
Putting the gender pay gap in context – Evidence that only men receive carrots and (sticks).
Manuscript in preparation: University of Exeter.
Kulich, C., Trojanowski, G., Ryan, M. K., Haslam, S. A., Renneboog, L.
This paper offers a new analysis of the gender pay gap by highlighting the circumstances under which pay differences occur. Results demonstrate the context dependence of the gender pay gap by examining managerial bonuses under different company performance conditions. In a matched sample of 192 female and male executive directors of UK companies, the gender pay gap was in evidence, but moreover, managerial compensation was more performance sensitive for male compared to female directors. Gender differences in risk attitudes and confidence and the pay decision process are discussed. The implications of these findings are considered in terms of the retention of female talent and explanations based on gender stereotypes.
About the "Glass Cliff" research
Research into the glass cliff examines what happens when women (and other minority groups) take on leadership roles. Extending the metaphor of the glass ceiling, “the glass cliff” describes the phenomenon whereby individuals belonging to particular groups are more likely to be found in leadership positions that are associated with a greater risk of failure and criticism.
This research is being conducted by the Glass Cliff research group, led by Dr Michelle Ryan and Prof Alex Haslam in the School of Psychology at the University of Exeter, UK. To find out more http://psy.ex.ac.uk/seorg/glasscliff/index.html.