The roots of the gender pay gap for nonprofit CEOs

Abstract

A simple comparison of male and female nonprofit executives' salaries cannot give an accurate picture of the gender pay gap because it ignores the gender disparity in executive hiring among large nonprofit organizations, where the CEO receives a higher salary. This study examines CEO salaries at 668 regional chapters of a public benefit nonprofit organization in the U.S., while taking the connection between hiring and compensation disparities into consideration. The findings reveal that the underrepresentation of women CEOs in more resourceful organizations is at the root of gender pay gap for nonprofit executives. This study concludes that improving the gender equity in hiring will help narrow the pay disparity between male and female CEOs.