Male corporate officers working for middle-aged male CEOs earn, on average, $85,880 more per year than their female peers, and female officers working for female CEOs earn more than their male peers (though the gender pay gap in that context is much smaller), say David Newton of Concordia University and Mikhail Simutin of the University of Toronto. Their analysis of thousands of large, publicly traded US companies provides strong evidence that CEOs pay officers of the opposite sex less than officers of their own sex. Moreover, when CEO successions result in changes in gender in chief executive offices, wages of officers are affected in a way consistent with the CEOs’ affording higher wages to officers of the same sex, the researchers say.

(Source: Management Science)

Published in Dawn, Economic & Business, August 31st, 2015

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