Gender And Executive Pay In The S&P Mid-Cap And Small-Cap Companies

Abstract

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.6in 0pt 0.5in;"><span style="font-family: "Times New Roman","serif"; font-size: 10pt; mso-bidi-font-weight: bold; mso-bidi-font-style: italic;">Gender pay equity among all levels of workers is a topic of interest to the public as well as to business researchers. Catalyst, a non-profit group devoted to the advancement of women in management, noted that women executives were paid only 68% of the earnings of their male counterparts in 1997. In this current study of the S&P Mid-Cap and Small-Cap companies, we find that variations in annual and long-term executive pay are generally not associated with gender, but rather with the size of the company, CEO pay (a control for pay-scale strategy), and whether the executive is in a line position. While women appear to be earnings equal amounts of total remuneration in these smaller companies, it should be noted that only 3.6% of the S&P Mid-Cap and Small-Cap five top-paid executives were female in 1998. </span></p>

Aging the gap: the compensation among men and women executives

“…Regarding the control variables, having a graduate degree had a significant positive impact on pay, while reaching the TMT through the ELM had a significant negative impact. As expected, firm ROA and size had a significant positive effect on compensation (Renner, Rives, & Bowlin, 2002), and this effect was particularly large in the variable pay component. Finally, being a female CEO had a significant positive effect on the total compensation.…”

“…Second, we controlled for differences in firm size, which tend to drive pay outcomes. Specifically, we used the number of employees (logarithmic transformation) to control for firm size, which is an important determinant of executive pay (Groysberg, Healy, & Lin, 2022;Peng, Sun, & Markóczy, 2015;Renner, Rives, & Bowlin, 2002;Tosi et al, 2000). Finally, because female representation in TMTs tends to mitigate the gender pay gap (Carter, Franco, & Gine, 2017;Elkinawy & Stater, 2011), we controlled for diversity of the TMT, which was measured as the percentage of female executives on the TMT present in ExecuComp.…”

Social network contingency, symbolic management, and boundary stretching

“…We also controlled for the CEO's gender because gender has been show to affect CEO compensation (Renner, Bowlin, and Rives, 2005). This value is 1 when the CEO is female and 0'when the CEO is male.…”