2021
DOI: 10.1002/nml.21455
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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… Show more

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Cited by 12 publications
(11 citation statements)
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“…However, we identified emerging discussions around especially three topics: wages, careers, and boards. Studies report on the existence of gender wage gaps mainly among managers (Gibelman, 2000; Lee & Lee, 2021; L'Herrou & Tynes, 2020; Mesch & Rooney, 2008; Parente & Martinho, 2018; Sampson & Moore, 2008; Themudo, 2009). In parallel, Faulk et al (2012) suggest that gender wage gaps may be smaller in NPOs than in for‐profit organizations and where higher proportions of women dominated occupations exist.…”
Section: In Search For Literature On Gender In Nposmentioning
confidence: 99%
“…However, we identified emerging discussions around especially three topics: wages, careers, and boards. Studies report on the existence of gender wage gaps mainly among managers (Gibelman, 2000; Lee & Lee, 2021; L'Herrou & Tynes, 2020; Mesch & Rooney, 2008; Parente & Martinho, 2018; Sampson & Moore, 2008; Themudo, 2009). In parallel, Faulk et al (2012) suggest that gender wage gaps may be smaller in NPOs than in for‐profit organizations and where higher proportions of women dominated occupations exist.…”
Section: In Search For Literature On Gender In Nposmentioning
confidence: 99%
“…Specifically, we postulate that an endogenous relationship exists between our binary independent variable of interest (ESG_INC) and our continuous dependent variable (EXCESS_BONUS). As such, to handle this type of endogenous relationship, linear regression with endogenous treatment is recommended; this technique has also been applied in recent studies as well with similar endogenous relationships (Cormier et al, 2019;Lee and Lee, 2021). The maximum likelihood estimator (MLE) technique simultaneously determines both equations (Peel, 2014) and is thought to be more efficient than a two-step procedure (Wooldridge, 2010).…”
Section: Sample Selectionmentioning
confidence: 99%
“…Despite women’s significant gain in nonprofit leadership roles, however, research still finds a persistent gender gap in executive compensation in nonprofit organizations (Lee & Lee, 2021; Zhao, 2020). A 2017 survey of CEO compensation in private foundations shows that the average salary of female CEOs was 84% of the average male CEO salary (Nonprofit Times, 2018).…”
mentioning
confidence: 99%
“…Gender pay gap exists regardless of economic sectors, with female executives being paid less than their male colleagues (Cook et al, 2019). However, gender pay gap for nonprofit CEOs is a more serious problem because women account for the vast majority of the nonprofit workforce, making up 75% of the sector’s workforce (BoardSource, 2021; Lee & Lee, 2021). Studies show that these women aim to be leaders of their organizations, and the persistent gender gap in CEO compensation will discourage aspiring women and increase their dissatisfaction and turnover (Di Mento, 2014; Lee, 2019).…”
mentioning
confidence: 99%
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