2021
DOI: 10.1111/corg.12389
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Pay inequality and gender dynamics in top executive positions

Abstract: Research Question/Issue: Contributing to ongoing debates on the determinants of diversity at the helm of companies, we investigate the relationship between executives' gender and pay inequality within the top executive team.Research Findings/Insights: Using a panel data set of US listed firms, we find that a greater inequality in executive pay is positively associated with the exit of female executives from the firm's top executive team. This effect is economically larger

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Cited by 8 publications
(8 citation statements)
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References 120 publications
(201 reference statements)
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“…Incorporating insights from corporate governance and behavioral economics, the study provides new evidence about the barriers for women to reach to and remain at the apex of the organization. In line with Boutchkova et al (2021) and Yin et al (2021), and regarding the contextual variations of their finding, Amore and Garofalo (2021) also suggest that social norms tend to influence the effectiveness of governance policies and practices aimed at increasing diversity in the upper echelons.…”
Section: Editor's Picks 2021supporting
confidence: 60%
See 1 more Smart Citation
“…Incorporating insights from corporate governance and behavioral economics, the study provides new evidence about the barriers for women to reach to and remain at the apex of the organization. In line with Boutchkova et al (2021) and Yin et al (2021), and regarding the contextual variations of their finding, Amore and Garofalo (2021) also suggest that social norms tend to influence the effectiveness of governance policies and practices aimed at increasing diversity in the upper echelons.…”
Section: Editor's Picks 2021supporting
confidence: 60%
“…The final Editor's pick of 2021 is about pay inequality and gender dynamics in top executive positions and hence connects the largely decoupled literatures on gender diversity and executive pay distribution. Amore and Garofalo (2021) deal with the widely neglected exit of female executives from the firm's top executive team. Based on panel data from US listed firms for the study period from 1992 to 2012, they show that female executives are more likely to leave when there are higher levels of inequality in executive pay.…”
Section: Editor's Picks 2021mentioning
confidence: 99%
“…At the TMT level, Gayle et al (2012) show that female executives are promoted faster internally but have a higher exit rate than men, and the high exit rate explains the pay gap with male executives. The reverse relationship is also observed: Female executives earn less than male executives, and the pay gap increases female executives' exit rates (Amore & Garofalo, 2021; Keller et al, 2020). This effect is influenced by organizational culture and temporal flexibility (Keller et al, 2020), pay structure, female representation in TMTs, and regional attitudes toward income inequality (Amore & Garofalo, 2021).…”
Section: Women's Tenure and Exitmentioning
confidence: 99%
“…The reverse relationship is also observed: Female executives earn less than male executives, and the pay gap increases female executives' exit rates (Amore & Garofalo, 2021; Keller et al, 2020). This effect is influenced by organizational culture and temporal flexibility (Keller et al, 2020), pay structure, female representation in TMTs, and regional attitudes toward income inequality (Amore & Garofalo, 2021). Corporate culture and promotion bias (e.g., an inequitable and negative work environment or the lack of development opportunities) can also push top‐performing women out of their companies (Samuelson et al, 2019).…”
Section: Women's Tenure and Exitmentioning
confidence: 99%
“…This is the view of many researchers including Arasa (2019) who avow that the inability of HRIS to fully support the health sector can be linked to numerous managerial challenges related to the complexity of the services rendered to the public, and the negligence of management Grabner and Martin (2021) also remarked management support is needed to fund the provision of other infrastructure that facilitate HRIS implementation in the health sector. Not prioritizing HRIS and its implementation by management of the health sector will render it useless causing low employee morale and possibly the intention to quit (Amore & Garofalo, 2021). Overall, we are of the view that the strategic role of any management is to pursue programmes that motivate employees.…”
Section: Managerial Challengesmentioning
confidence: 99%