Who pays the penalty? Implications of gender pay disparities within top management teams for firm performance

Yoshio Yanadori, Carol T. Kulik, Jill A. Gould

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

Despite the expected advantages of appointing women to corporate leadership roles, empirical evidence provides mixed support for the positive relationship between women's representation in the top management team (TMT) and subsequent firm performance. Considering the evidence that female TMT members are often paid less than their male colleagues, this study examines the implications of a gender pay disparity for the relationship between women's representation in the TMT and firm performance. Our analysis that draws on TMT pay data in public Australian firms demonstrates that gender pay disparities within TMTs negatively moderate the relationship between women's representation in the TMT and subsequent firm performance. Specifically, when female TMT members are paid less than their male colleagues, and this gender pay disparity is large, women's representation in the TMT is negatively associated with firm performance.

Original languageEnglish
Pages (from-to)681-699
Number of pages19
JournalHuman Resource Management
Volume60
Issue number4
DOIs
Publication statusPublished - 2021 Jul 1

Keywords

  • TMT gender diversity
  • TMT gender pay disparity
  • expectation states theory
  • firm performance
  • gender dynamics
  • social identity theory

ASJC Scopus subject areas

  • Applied Psychology
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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