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BizReport : Research archives : March 14, 2016

Study: Gender pay gap among CEOs in the UK is non-existent

The gender pay gap among CEOs in the UK does not exist, according to new research from Dr. Philipp Geiler of EMLYON business school and Professor Luc Renneboog of Tilburg University department of finance.

by Helen Leggatt

'Are female top managers really paid less?', a paper examining the nature of executive directors' remuneration in the UK found that, despite perceptions to the contrary, female CEOs in the UK are paid equally to their male counterparts.

However, rather than being performance dependent, top women leaders' salaries are focused more on individual management style, found the research, while men's are more performance focused. Furthermore, any bonuses paid to women were found to be unlikely to be based on company performance as it would be with their male counterparts - instead bonuses were based on the perception of her charisma and leadership ability.

However, as only 2% of CEOs in the UK are female, the research also looked into senior executives pay (4% female) and here gender discrimination is evident. Female executives below the level of CEO, such as deputy CEO, CFO and COO, can expect to earn 23% less than their male counterparts and receive a 20% lower bonus.

According to the research, "the CEO operates above monetary discrimination - and this rings true of both genders with marginal difference in salaries being recorded". With just 2% of CEOs and 4% of executive directors being female, it is, perhaps, "the road to female leadership itself that is paved with inequality, and that gender parity in remuneration has (nearly) been reached - but only for those who have climbed to the very top".

Image via Shutterstock

Tags: executive, gender, remuneration, salary, study, UK

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