Page 36 - Appreciating Organization's Biggest Assets

severance payouts, tax breaks on than female executive. Women
golden parachutes, spousal travel, advance more efficiently within the
automobiles, and private security. company, although both genders

• It is believed that the gender show equivalent rates of external
pay gap is “both persistent and promotion. Female executives have
universal” significantly less work experience
than male executives since they
Conclusion are promoted more frequently
Executive compensation is still at the top levels of the hierarchy.
a controversial issue in today’s However, female executives leave
economic environment. One might the workforce more frequently
claim that CEO compensation than male executives do, and at
simply reflects the market value of a every age, the likelihood of a female
limited resource. Women continue executive becoming CEO is less
to earn less money overall than men than half that of a male executive.
do when it comes to the gender The study reveals that male
wage gap. In the executive sector, the executives have a survival rate that
wage gap between men and women is twice as high as female executives.
is specifically between 21.7% and Additionally, executive pay is
26.8%. Men often earn more money based on a number of measures of
overall than women, according to managerial achievement, such as a
research on the pay gap effect. As company’s performance. Executive
observed, that more than 60% of this compensation decisions may have
wage difference may be explained by a significant impact on a company.
the fact that men exhibited more Carefully managing compensation
favored qualities after decomposing improves performance by bringing
this salary premium for men. individuals’ attitudes into line
The fraction of the features effect with the business’s strategy. Poor
grows with greater wage levels. The management can have severe
coefficients effect, which shows results, including the loss of
that men and women are paid critical personnel, demotivation,
differently for having the same misaligned goals, and inadequate
characteristics—more favorably shareholder returns. It’s crucial for
for male executives than for female boards and management teams to
executives remains significant in get compensation right given the
spite of this. In a male-dominated high risks.
industry, male executives often earn
much more compensation overall

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