Who gets the Carrot and Who gets the Stick? Evidence of Gender Disparities in Executive Remuneration

C. Kulich, G. Trojanowski, M. Ryan, S.A. Haslam, L.D.R. Renneboog

Research output: Working paperDiscussion paperOther research output

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Abstract

This paper offers a new explanation of the gender pay gap in leadership positions by examining the relationship between managerial bonuses and company performance. Drawing on findings of gender studies, agency theory, and the leadership literature, we argue that the gender pay gap is a context-specific phenomenon which results partly from the fact that company performance has a moderating impact on pay inequalities. Employing a matched sample of 192 female and male executive directors of UK listed firms we corroborate the existence of the gender pay disparities in corporate boardrooms. In line with our theoretical predictions, we find that bonuses awarded to men are not only larger than those allocated to women, but also that managerial compensation of male executive directors is much more performance-sensitive than that of female executives. The contribution of attributional and expectancy-related dynamics to these patterns is highlighted in line with previous work on gender stereotypes and implicit leadership theories such as the romance of leadership. Gender differences in risk-taking and confidence are also considered as potential explanations for the observed pay disparities. The implications of organizations’ indifference to women’s performance are examined in relation to issues surrounding the recognition and retention of female talent.
Original languageEnglish
Place of PublicationTilburg
PublisherFinance
Number of pages49
Volume2010-02
Publication statusPublished - 2010

Publication series

NameCentER Discussion Paper
Volume2010-02

Fingerprint

Executive remuneration
Gender disparity
Bonuses
Company performance
Gender pay gap
Managerial compensation
Indifference
Gender differences
Prediction
Romance of leadership
Agency theory
Risk taking
Confidence
Leadership theory
Expectancy
Gender stereotypes

Keywords

  • executive compensation
  • gender pay gap
  • gender stereotypes
  • implicit leadership theories
  • corporate performance
  • romance of leadership

Cite this

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. (CentER Discussion Paper; Vol. 2010-02). Tilburg: Finance.
Kulich, C. ; Trojanowski, G. ; Ryan, M. ; Haslam, S.A. ; Renneboog, L.D.R. / Who gets the Carrot and Who gets the Stick? Evidence of Gender Disparities in Executive Remuneration. Tilburg : Finance, 2010. (CentER Discussion Paper).
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Kulich, C, Trojanowski, G, Ryan, M, Haslam, SA & Renneboog, LDR 2010 'Who gets the Carrot and Who gets the Stick? Evidence of Gender Disparities in Executive Remuneration' CentER Discussion Paper, vol. 2010-02, Finance, Tilburg.

Who gets the Carrot and Who gets the Stick? Evidence of Gender Disparities in Executive Remuneration. / Kulich, C.; Trojanowski, G.; Ryan, M.; Haslam, S.A.; Renneboog, L.D.R.

Tilburg : Finance, 2010. (CentER Discussion Paper; Vol. 2010-02).

Research output: Working paperDiscussion paperOther research output

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Kulich C, Trojanowski G, Ryan M, Haslam SA, Renneboog LDR. Who gets the Carrot and Who gets the Stick? Evidence of Gender Disparities in Executive Remuneration. Tilburg: Finance. 2010. (CentER Discussion Paper).