Executive compensation and gender: S&;P 1500 listed firms

We examine if a gender gap persists in executive compensation and if the composition and the determinants of executive compensation for men versus women are the same for the S&P1500 listed firms during the period from 1992 to 2004. This analysis is also extended to high tech firms, where high scholarship is required both for male and female executives. The results reveal that the gender gap in executive compensation is reducing essentially after the year 2000. Also, the factors that explain the variation in executive compensation are not all the same for men and women. However, firms continue to pay women, who are considered more risk averse than men, a similar proportion of risky compensation components, such as stock options and restricted stocks, than they pay to men. In terms of technology firms, we find that the gender differences in total compensation are not statistically significant. Our study offers insight into recent data for executive compensation. The finding that the gender gap diminishes is a sign of a better functioning market for executives. Our findings could be potentially useful for compensation committees in order to develop compensation packages that take into consideration the degree of risk aversion in order to enhance performance. Compensation adjusted for risk aversion can produce a higher level of satisfaction for the employees and can lead to better performances. Future research should focus on international comparison of various dimensions of executive compensation.     

The Impact of Same‐Sex LMX Dyads on Performance Evaluations

Numerous studies have found that supervisors rate women lower than men for similar levels of performance, suggesting that for female employees, performance alone may not be able to guarantee fair ratings. What is not clear is whether this disparity is a function of the gender composition of the supervisor–subordinate dyad or simply a case of male supervisor rating behavior. Based on data from supervisor–subordinate dyads in four organizations, we found that after controlling for performance, both male and female supervisors exhibit a positive bias toward subordinates of the same sex and rate members of the same gender higher. © 2001 John Wiley & Sons, Inc.     

Going beyond self–other rating comparison to measure leader self‐awareness

Data were collected from leaders who rated their interpersonal competencies, were rated by their direct reports on the same competencies, and then were asked to predict as accurately as possible how their direct reports rated them. Leader self‐awareness was examined by analyzing self–other ratings and prediction–other ratings with a supervisor‐rated measure of leader effectiveness. Results showed that prediction–other ratings explained a greater percentage of the variance in leader effectiveness than did self–other ratings. These results suggest that prediction–other rating comparison may be a viable additional way to measure self‐awareness in organizational settings and may avoid some of the disadvantages when only using self‐ratings or self–other ratings.     

Wage Differences Between Men and Women: Performance Appraisal Ratings vs. Salary Allocation as the Locus of Bias

This article explores the nature and origins of wage differences between men and women in the context of a single large financial services organization. Data collected on 800 women and 1831 men showed that modest wage differences do exist and that they tend to be concentrated primarily in managerial levels. Two possible sources of bias in evaluation were assessed – performance appraisal ratings and the translation of performance appraisal ratings into salay. Our analyses showed that performance appraisal ratings, on average, do not differ between men and women at the same level; however, the relationship between performance appraisal ratings and salary was stronger for men then women, particularly at higher levels. This suggests that the salary allocation process, and not the performance appraisal process, may be the source of bias in large organizations.     

A fair go? The gender pay gap among corporate executives in Australian firms

In virtually all economies, executive positions are highly male dominated. This study examines the pay gap between male executives and female executives in large Australian firms from 2011 to 2014 to evaluate whether female executives are paid equitably compared with male executives. The mean pay comparison shows that female executives earn 80.7% of the total pay earned by male executives. A large part of the gender pay gap is explained by differences in positions held; female executives are particularly underrepresented in highly paid executive positions. After controlling for executive position and other relevant individual and firm characteristics, there remains a 15.1% gender gap in total pay. Our findings suggest that to achieve the goal of gender equity, both the proportion of women at executive level and the executive-level gender pay gap need to be monitored.     

Willingness to compete: Between‐ and within‐gender comparisons

This paper introduces a new instrument to elicit individual willingness to compete (WTC). Experimental data corroborate the standard result according to which the average WTC of men is higher than the average WTC of women. However, our WTC measure reveals significant within‐gender heterogeneity: 10% of women are extremely competitive, and 13% of men are extremely averse to competition. Gender differences in WTC persist after controlling for ability, self‐confidence, tolerance for risk, and the gender of the partner.     

A comparison of adverse impact levels based on top‐down,multisource, and assessment center data: Promoting diversity and reducing legal challenges

We compared levels of adverse impact (AI) against minorities and women based on three promotional decision methods for 428 associate store managers of a Fortune 500 retailer: top‐down appraisal (TDA), multisource appraisal (MSA), and an assessment center (AC). We found significant effects for race and minority status (favoring whites) but no significant effects for gender across all three methods. Comparisons were analyzed using two definitions of AI (four‐fifths rule and the Fisher Exact Test) with a selection ratio (SR) of .25. No evidence of AI was found against blacks for any of the methods. For Hispanics, AI was found under the four‐fifths rule for the AC. For women, the four‐fifths rule was violated using TDA. Results provide some partial support for the argument that diversity goals are more likely to be met using assessment centers compared to TDA when the preponderance of raters are white men. Our data also suggest that carefully crafted, job‐related, top‐down appraisal, combined with rater training, may be effective in facilitating the promotion of more women and minorities and reducing the probability of legal problems. © 2012 Wiley Periodicals, Inc.     

The role of interpersonal affect in performance appraisal: evidence from two samples – the US and India

The interpersonal affect, a li ke–dislike relationship between a supervisor and his/her subordinate, has traditionally been conceptualized as a source of bias in performance appraisals. However, some researchers have argued that the interpersonal affect may not be a bias, especially where it develops as a result of past performance. In this field study, using data from 190 supervisors in the US, and 113 supervisors in India, we delineate the relationship between interpersonal affect and performance ratings. In both samples, interpersonal affect and performance level were found to have significant effects on performance ratings. Results from the US sample indicated that raters are able to separate their liking for a subordinate from actual performance when a ssigning performance ratings, suggesting that the interpersonal affect does not operate as a bias in the appraisal process. Results from the Indian sample, however, suggest that supervisors inflate ratings of low performers, suggesting that local cultural norms may be operating as a moderator.     

The Impact of Gender Similarity on Employee Satisfaction at Work: A Review and Re‐Evaluation*

abstract We used data from the British 1998 Workplace Employee Relations Survey (WERS98) to examine key unanswered questions about the impact of gender similarity on employee satisfaction at work. The study sample consisted of 11,848 men and 11,278 women from over 1700 workplaces across Britain. In line with gender‐specific compositional arguments, the effects of gender similarity were found to be asymmetrical for men and women, with similarity tending to have a greater positive impact on men than on women. The effects involved were primarily linear in nature. Net of the potentially confounding influence of other factors, they were also found to be quite weak, weaker than has commonly been suggested in the literature.     

The effect of rater accountability on performance ratings: A meta-analytic review

Although rater accountability is recognized as a potentially important characteristic of performance rating contexts, due to discrepant findings in the literature, its effect on performance ratings is unclear. This issue was addressed in the present study using meta-analytic methods to synthesize findings across 35 samples. Consistent with expectations, the effect of rater accountability on performance ratings varied as a function of accountability source, such that ratings were substantively influenced by accountability only when raters were held accountable by the ratee versus a superior. This effect was consistent whether accountability was introduced through identification or justification manipulations. Further, we did not detect any evidence suggesting that findings varied as a function of rating direction or study setting. Implications for performance appraisal research and practice are discussed.     

企业年报阅读难易程度的衡量与影响因素研究——基于管理者操纵视角

以我国2007—2017年上市企业年报文本信息为研究对象,基于委托代理背景下的印象管理理论,从驱动、约束、风格三个维度分析易读性运用的影响因素。研究结果表明:企业绩效与易读性水平显著正相关,是易读性操纵的驱动因素;民营企业的盈利水平会显著驱动高管对易读性水平的操纵,而从长期公司价值的角度来看,不同所有制公司之间操纵的动机无显著差别;公司治理水平对管理者操纵年报易读性的抑制作用较为有限,监事会规模能发挥有效作用;保持高管团队的多样性和专业程度、提高女性高管占比、高管团队年轻化、提高受教育程度,均在提升年报易读性水平方面能够起到积极作用。     

Who promotes a value‐in‐diversity perspective? A fuzzy set analysis of executives’ individual and organizational characteristics

Diversity perspectives are philosophies of or approaches to diversity held by organizations, groups, or executives. They are important for organizations because they can determine the success or failure of diversity in the workforce. However, little is known about the predictors of diversity perspectives among executives. Using fuzzy set qualitative comparative analysis, we analyzed 50 interviews with top executives in Germany to identify individual and organizational characteristics that predict executives' adoption of a diversity perspective, in particular of a value‐in‐diversity perspective. Specifically, we analyzed gender, age, education level, vocational background, and tenure (individual characteristics), as well as size, sector of organization, and competitive environment (organizational characteristics), as potential predictors. We found single characteristics did not predict adoption, but configurations of characteristics did. Drawing on the person‐situation‐interactionist perspective, we developed specific profiles of executives likely to foster a value‐in‐diversity perspective and identified characteristics of their work environments that support such an approach. Theoretical and practical implications are discussed.     

Can group identity explain the gender gap in the recruitment process?

Despite evidence that the gender gap in the labour market favours men, aggregate findings from correspondence studies show that women are more likely than men to be invited for a job interview. We hypothesize that the predominance of women among recruiters may explain this somewhat puzzling finding; recruiters may favour applicants of their own gender. We use the data from a large-scale correspondence study to test this hypothesis. As expected, we find that female applicants are more likely to receive callbacks for interview. We also see that in our sample the majority of contact persons responsible for the recruitment process are female. More importantly, we find that if recruiter and applicant are of the same gender, then the likelihood that the applicant will be invited for an interview increases. These findings reveal the gender favouritism at the selection stage in the labour market.     

Justice in the workplace: the centrality of social versus judgmental predictors of performance varies by gender

Men and women are said to perceive justice differently, with women proposed to be more concerned with relational issues and men focused more on material issues. In this study, the potential for differential effects of justice on performance by gender was analyzed across the four contemporary types of justice. Respondents were 265 male and 113 female occupationally diverse employees in a single organization. The results show significant differences in how men and women respond to the four justice types with only one – informational justice – acting similarly by gender. The differential relationships between each of the justice types and the outcomes by gender highlight the utility of the four factor approach to measuring organizational justice. Women were more interested in maintaining social harmony than men. The results appear to strongly support the use of the justice judgment model over the group-value model as a means of explaining the gender differences. Implications for management include the importance of informational justice both generally and within the performance appraisal process.     

Government Performance and Chief Executives’ Intangible Assets: Motives,Networking, and/or Capacity?

This study explores the impact of chief executives’ intangible assets – motives, capacity and networks – on government performance. Three main hypotheses suggesting a direct relationship between these assets and performance are tested using data from municipalities in El Salvador, where the chief executive is the elected mayor. The research involved an in-field survey of 135 Salvadorian mayors (out of 262) and data collected from national agencies, focusing on two dimensions of municipal performance: service delivery (electricity and running water) and expansion of revenue (with national grants). After controlling for municipal and constituent-level factors, findings indicate that the chief executive’s capacity (specifically mayoral expertise) is positively correlated to municipal delivery of electricity and running water; intrinsic motivation is linked to expansion of water services; and municipalities whose chief executives are nationally networked tend to receive more grant monies. This study contributes to the literature on government performance by assessing the role of chief executives’ intangible assets in the developing context of a relatively newly established democracy in Latin America.     

The Network‐Performance Relationship in Knowledge‐Intensive Contexts—A Meta‐Analysis and Cross‐Level Comparison

This study examines the generalizability of the network‐performance relationship across individual and group levels, focusing on knowledge‐intensive contexts. Drawing on a meta‐analytical approach, we synthesize the results of 102 empirical studies to test whether network characteristics such as centrality, brokerage, and tie strength similarly influence the job performance of individuals and groups. Results show that while there are no differences in the direction of the network‐performance relationship across levels, there are substantial differences in magnitude. Individual performance profits more strongly from a high number of direct connections, whereas groups reap higher benefits from brokerage positions. Additional analyses reveal that the network measurement method, tie content, and performance criteria function as moderators of the network performance relationship, but their influence is consistent neither across network characteristics nor across levels. By meta‐analytically comparing and contrasting the network‐performance relationship for individuals and groups, we contribute to multilevel research on networks and organizations. Particularly, we move toward the development of a multilevel homology theory of networks. Implications for theory, practice, and future research are discussed. © 2017 Wiley Periodicals, Inc.     

Are long‐term incentive plans an effective and efficient way of motivating senior executives?

Research on senior executive reward has typically explored the connection between pay, performance and the alignment of interests of executives and shareholders. This article examines the relationship between reward and motivation, drawing on the psychological, behavioural economics and decision‐making literatures. Based on an empirical study of FTSE 350 senior executives, the research examines whether long‐term incentive plans are an effective and efficient way of motivating executives, taking into account risk, time discounting, uncertainty and fairness. The article concludes that the way executives frame choices, perceive value, assess probability, evaluate temporal effects and respond to uncertainty means that long‐term incentive plans (LTIPs) are generally not efficient and are often not effective in meeting their objectives. It proposes that, in its current form, agency theory does not provide a sound basis for modelling senior executive reward, and suggests five areas for development.     

Absenteeism,Gender and the Morbidity–Mortality Paradox

Women are, on average, more often absent from work for health reasons than men, but live longer. This conflicting pattern suggests that the gender absenteeism gap arises partly from factors unrelated to objective health. An overlooked explanation is that men and women might have different preferences for absenteeism due to different attitudes to, for example, risk. Using detailed administrative data on absenteeism, hospitalizations, and mortality, we evaluate the existence of gender‐specific preferences for absenteeism and analyze whether these differences are socially determined. We find robust evidence of gender differences in absenteeism that cannot be explained by poorer objective health among women. Copyright © 2016 John Wiley & Sons, Ltd.     

Exploring the effect of gender diversity in MFIs during turbulent periods

Abstract

Gender diversity is generally recognized as relevant in microfinance, and the relationship between gender diversity and firms’ performance has received attention in academic literature. The above-mentioned relationship has not been addressed until now in the microfinance industry specifically. This study seeks to explain the role played by gender diversity in the workforce of microfinance institutions (MFIs) during turbulent periods in the firms’ performance. The study analyses data from 555 ratings of 185 MFIs from MicroFinanza Rating, a leading microfinance rating agency. The analysis shows that the number of women on the staff of MFIs is significantly and positively associated with both the Return on Equity and Operational Self-Sufficiency of MFIs, indicating a positive impact of gender diversity on firms’ performance.     

The existence of gender‐specific promotion standards in the U.S.

This paper is motivated by the claim that promotion probabilities are lower for women than men. Using data from the 1984 and 1989 National Longitudinal Youth Surveys, this paper tests this claim and two related hypotheses concerning training and ability. It is found that females are less likely to be promoted than males, and females receive less training than males. The relationship between promotion and gender varies across occupations, however, suggesting that the alleged glass ceiling faced by women and other minorities in the workplace is not uniform across all labor markets. Copyright © 2002 John Wiley & Sons, Ltd.