Role Of Women Ceos Have A Lower Compensation Than Men

2148 WordsMay 21, 20159 Pages
Abstract The primary focus of this paper is to determine what factors play a role in defining compensations for the highest position in Fortune 100 companies, the chief executive officer (CEO). This paper perceives the hypothesis that women CEOs have a lower compensation than men. This study expands research by integrating variables that had not been brought to light in prior literature as well as renewing the findings of Jordan, Clark, and Waldron (2007). This paper uses cross-section data from 2013-2014 to examine which characteristics are relevant. An OLS regression is used to determine which factors play a significant role in determining compensations. This study finds there are three significant factors directly related to a CEO’s compensation: change the company’s stock price, tenure, and race. JEL Codes: M12, M14, M52 I. Introduction Chief Executive Officers (CEOs) are the highest paid position in the corporate world. They are administrators in charge of managing profits of an organization. With such great responsibility returns great wealth, but how are these elite few chosen? Is there a particular characteristic that factors directly to a higher compensation for CEOs? Based on current data related to the previous questions, we hypothesize: women CEOs of the nation 's largest corporations have a lower compensation than men. Although extensive research has been done on the barriers women face in trying to climb the corporate ladder, relatively few studies
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