The roots of the gender pay gap for nonprofit <scp>CEOs</scp>

Lee, Young‐Joo; Lee, Chang Kil

doi:10.1002/nml.21455

Cited by 12 publications

(11 citation statements)

References 40 publications

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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%

Gender in nonprofit organizations: A critical review and research agenda

Holgersson

Hvenmark

2023

Nonprofit Mgmnt & Ldrshp

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In this paper, we suggest a research agenda based on a review of literature exploring gender in nonprofit organizations (NPOs) published in key field‐specific journals in nonprofit studies. The literature review shows that gender is often included as an unproblematized variable and that few studies focus on organizational processes that (re)produce gender inequalities and promote gender equality in NPOs. There is thus a need to expand our knowledge concerning gender in NPOs. The purpose of this paper is therefore to contribute to the development of empirical and theoretical work concerning organizational processes that (re)produce gender in NPOs. In order to inspire such endeavors, we outline a research agenda that proposes an understanding of gender informed by gender theory, an acknowledgement of NPOs as arenas where gender is (re)produced, and a development of theories on NPOs as gendered organizations.

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Section: In Search For Literature On Gender In Nposmentioning

confidence: 99%

Gender in nonprofit organizations: A critical review and research agenda

Holgersson

Hvenmark

2023

Nonprofit Mgmnt & Ldrshp

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“…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%

Are ESG performance-based incentives a panacea or a smokescreen for excess compensation?

Keddie

Magnan

2023

SAMPJ

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Purpose This paper aims to examine how the use of environmental, social and governance (ESG) incentives intersects with top management power and various corporate governance mechanisms to affect excess annual cash bonus compensation. Design/methodology/approach The authors use a novel artificial intelligence (AI) technique to obtain data about ESG incentives use by firms in the S&P 500. The authors test the hypotheses with an endogenous treatment-regression and a contrast test. Findings When the top management team has power and uses ESG incentives, there is a 32% reduction in excess annual cash bonuses implying ESG incentives are an effective corporate governance tool. However, nuanced analyses reveal that when powerful management teams with ESG incentives are from environmentally sensitive industries, have a corporate social responsibility (CSR) committee or have long-term view institutional shareholders, they derive excess bonuses. Practical implications Stakeholders will better understand management’s motivations for the inclusion of ESG incentives in executive compensation contracts and be able to identify situations which require closer scrutiny. Social implications Given the increased popularity of ESG incentives, society, regulators, boards of directors and management teams will be interested in better understanding when these incentives might be effective and when they might be abused. Originality/value To the best of the authors’ knowledge, this study is the first to examine the use of ESG incentives in relation to excess pay. The authors contribute to both the CSR and executive compensation literatures. The work also uses a new methodological technique using AI to gather difficult-to-obtain data, opening new avenues for research.

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“…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%

“…However, research suggests that board gender diversity, that is, increased representation of women on the governing board, contributes to gender equity in executive leadership (Cook et al, 2019; Lee, 2019). Scholars explain that the board of directors plays a major role in hiring CEOs and determining their compensation, and therefore, gender dynamics on nonprofit boards can affect gender equity in CEO compensation (Knippen et al, 2018; Lee & Lee, 2021; National Council of Nonprofits, n.d.). Then, can improving board gender diversity also help close the gender gap in nonprofit CEO compensation?…”

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confidence: 99%

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Board Gender Diversity and Nonprofit CEO Compensation: Implications for Gender Pay Gap

Lee

2023

Nonprofit and Voluntary Sector Quarterly

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This study examines how gender diversity on nonprofit boards relates to chief executive officer (CEO) compensation using data of 1,835 501(c)(3) organizations with the GuideStar Platinum Seal of Transparency. The analysis reveals a positive association between women’s representation on a governing board and female CEO compensation until women’s proportion reaches 82%. By contrast, there is a negative relationship between women’s representation on boards and male CEO compensation. Overall, the findings suggest that board gender diversity has distinctive implications for CEO compensation depending on CEO gender and that having more women on governing boards contributes to closing the gender pay gap for nonprofit executives. These findings can be applied to other dimensions of diversity, including racial and ethnic diversity.

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The roots of the gender pay gap for nonprofit CEOs

Cited by 12 publications

References 40 publications

Gender in nonprofit organizations: A critical review and research agenda

Gender in nonprofit organizations: A critical review and research agenda

Are ESG performance-based incentives a panacea or a smokescreen for excess compensation?

Board Gender Diversity and Nonprofit CEO Compensation: Implications for Gender Pay Gap

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