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Gender differences in executive compensation: Variation with board gender composition and time

  • Elkinawy, Susan
  • Stater, Mark
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    This paper uses EXECUCOMP, COMPUSTAT and Investor's Responsibility Resource Center data to examine gender differences in executive salaries and total compensation from 1996 to 2004. We find that the salaries of female executives are about 5 percent lower than those of male executives, controlling for executive, firm, and board characteristics, and that the gap exists primarily in the lower officer ranks, where women are relatively highly concentrated. The gender difference in salary is larger in firms with more male-dominated boards; perhaps not coincidentally, such firms are also found to have fewer female executives in top managerial positions as well as lower probabilities of having any top female executives at all. The results of Oaxaca wage decompositions suggest that, although the magnitude of the gender difference decreases slightly over the sample period, the share of the gender difference that is due to unobserved factors remains basically steady or even increases. Thus, although women have become better represented in top executive jobs in recent decades, their relative salaries remain below those of men, possibly due in part to governance structures that remain male-dominated.

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    File URL: http://www.sciencedirect.com/science/article/B6V7T-507CRSK-1/2/9e1307f6fb67a59ae1124007d22937e8
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    Article provided by Elsevier in its journal Journal of Economics and Business.

    Volume (Year): 63 (2011)
    Issue (Month): 1 (January)
    Pages: 23-45

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    Handle: RePEc:eee:jebusi:v:63:y::i:1:p:23-45
    Contact details of provider: Web page: http://www.elsevier.com/locate/jeconbus

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    1. Benjamin E. Hermalin & Michael S. Weisbach, 2001. "Boards of Directors as an Endogenously Determined Institution: A Survey of the Economic Literature," NBER Working Papers 8161, National Bureau of Economic Research, Inc.
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    7. Lausten, M., 2001. "Gender differences in managerial compensation - Evidences from Denmark," Papers 01-4, Aarhus School of Business - Department of Economics.
    8. Brad M. Barber & Terrance Odean, 2001. "Boys Will Be Boys: Gender, Overconfidence, And Common Stock Investment," The Quarterly Journal of Economics, MIT Press, vol. 116(1), pages 261-292, February.
    9. Oropesa, R S, 1993. " Female Labor Force Participation and Time-Saving Household Technology: A Case Study of the Microwave from 1978 to 1989," Journal of Consumer Research, University of Chicago Press, vol. 19(4), pages 567-79, March.
    10. Nancy Mohan & John Ruggiero, 2007. "Influence of firm performance and gender on CEO compensation," Applied Economics, Taylor & Francis Journals, vol. 39(9), pages 1107-1113.
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