Why do women make less than men in chief executives management?

According to the U.S. Census Bureau, there are approximately just over one million chief executives in management positions in American companies, of which 23 percent are women.

The average salary of a male chief executive is $126,000, while the average salary for a female chief executives is $95,921, which is 76 percent of her male counterpart’s salary.

While gender pay gaps exist in almost every profession (and the Census Bureau offers those states in more than 500 occupations), it seems odd that the pay gap would exist at one of the highest levels of corporate American occupational infrastructure.

A research team from the Federal Reserve Bank of New York discovered that 93 percent of the difference in total pay between male and female executives stems from disparate incentive pay, usually in the form of stock options and grants. This disparity remained true even when the researchers controlled for factors such as the difference in title, tenure at a firm and age. 

 

Advertisements