Accurate, Focused Research on Law, Technology and Knowledge Discovery Since 2002

Incentive Pay and Gender Compensation Gaps for Top Executives

New York Fed – “The persistence of a gender gap in wages is shaping the debate over women’s equality in the workplace and underscores the challenge facing policymakers as they consider their potential role in closing it. While the disparity affects females at all income levels, women in professional and managerial occupations tend to experience greater gender-pay differences than those in working-class jobs. The rise in the use of incentive pay, which has been linked to the growth of income inequality (Lemieux, MacLeod, and Parent), might have contributed to the gender gap in earnings (Albanesi and Olivetti). In this post, which is based on our related New York Fed staff report, we document three new facts about gender differences in the structure of executive compensation. Evidence on Gender Differences in Executive Pay – Our research focuses on the top five executives by title in public companies (chair/chief executive officer (CEO), vice chair, president, chief financial officer, and chief operating officer) in Standard and Poor’s ExecuComp database between 1992 and 2005. Only 3.2 percent of people in these roles are women.

  • Fact 1: Female executives receive a lower share of incentive pay in total compensation than males. This difference accounts for 93 percent of the unconditional gender gap in total pay…”

Sorry, comments are closed for this post.