Are female top managers really paid less?

P.H.M. Geiler, Luc Renneboog

Research output: Contribution to journalArticleScientificpeer-review

Abstract

We study the gender pay gap for all top managers (CEO and executive directors) of listed UK companies and find mixed evidence: female CEOs do not face a pay gap, but the other female executive directors (e.g. CFO, COO, Deputy CEO) are discriminated against (while controlling for position, tenure, age, industry, time period, marital status, and parenthood). These female top managers earn about 23% less than their male counterparts, which amounts to £1.3 million over a five-year period (their average tenure as an executive at the board level). The gender pay gap is lower for managers in firms with female non-executive directors on the board. Also, female managers working in “male” industries experience a smaller pay gap. When remuneration contracting occurs with the help of top remuneration consultants, we note that the total remuneration offered to top managers is higher but the pay gap for executive directors still remains (but not for the CEO). The gender pay gap increases in case of marriage and parenthood.
Original languageEnglish
Pages (from-to)345-369
JournalJournal of Corporate Finance
Volume35
DOIs
Publication statusPublished - Dec 2015

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Chief executive officer
Managers
Gender pay gap
Remuneration
Industry
Tenure
Parenthood
Consultants
Female managers
Marital status
Non-executive directors
Contracting
Marriage

Keywords

  • Executive compensation
  • Gender pay-gap
  • Gender discrimination
  • Pay-for-performance
  • Glass ceiling
  • Children-and-career

Cite this

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title = "Are female top managers really paid less?",
abstract = "We study the gender pay gap for all top managers (CEO and executive directors) of listed UK companies and find mixed evidence: female CEOs do not face a pay gap, but the other female executive directors (e.g. CFO, COO, Deputy CEO) are discriminated against (while controlling for position, tenure, age, industry, time period, marital status, and parenthood). These female top managers earn about 23{\%} less than their male counterparts, which amounts to £1.3 million over a five-year period (their average tenure as an executive at the board level). The gender pay gap is lower for managers in firms with female non-executive directors on the board. Also, female managers working in “male” industries experience a smaller pay gap. When remuneration contracting occurs with the help of top remuneration consultants, we note that the total remuneration offered to top managers is higher but the pay gap for executive directors still remains (but not for the CEO). The gender pay gap increases in case of marriage and parenthood.",
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Are female top managers really paid less? / Geiler, P.H.M.; Renneboog, Luc.

In: Journal of Corporate Finance, Vol. 35, 12.2015, p. 345-369.

Research output: Contribution to journalArticleScientificpeer-review

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