Hypotheses of The Study
Low Proportion of women in executive management and board position has gained more attention in U.S.A and all over the world. According to Fortune 500 only 6.4% of the U. S’s biggest companies are led by women. Most of the studies shows that men and women possess the same skills and abilities, as goes for educational achievement. We can find various theories and opinions presented to explain the observed gender gap in senior management positions. The hypothesis of this study is there is big differences of compensation between women CEOs and the male CEOs. Our main research question is, “is there a gender gap in CEO compensation?”. Besides the compensation this study tries to find that “which industries are being led by Women CEOs”.
The research “Current female chief executive officers versus the current male chief executive officers (CEO) at Fortune 500 companies” gives overview of the status of female and male CEOs. 2017 made the new record in the history of women CEOs numbers. The number of women CEOs on the Fortune 500 has increase by more than 50 percent from 21 to 32. Fortune 500 is the main source of the of this comparative study. According to the Fortune 500 number of women CEOs was the highest proportion yet seen in the 63 years history of the list. But in comparison to male CEOs number this number of Women CEOs if very low. Salary, service sector and increasing ratio of CEOs are the main comparative subject of this study. The aim of this study is to extend the knowledge of processes linked to women’s CEO Status. We have done this study through a comparison of similarities and differences in organizational, interpersonal and individual factors between women CEOs and comparable men CEOs.
Most of the literatures address issues related to CEO compensation is based on agency theory. But in reality, agency theory does not provide the guidance on CEO salary with the respect to gender difference. No theory provides any conceptual insights into the association of CEO pay and gender, unless one can argue that female CEOs are better at capturing boards than their male counterparts. Other studies find difficulties to compare only 32 CEOs to other Male CEOs. For example, Bellstrom (2017) explained that given that sample size, it’s difficult to draw any real conclusion by comparing median male compensation to median female compensation. Some executive compensation experts say, that median female CEO, surprisingly, makes more than her male peer (Jena McGregor, 2017). But the president of institute for Women’s Policy Research, Heidi Hartman says “those women who do make it to the top? They must be exceptional”.
Besides salary aspects our study tries to find that why there are few numbers of female CEOs. Technically, gender does not play the vital role in any person’s ability to lead the business. Pew Research Center claim that men and women equally qualified to lead in the business world. Studies find that due to gendered stereotypes that pervade the workplace. Pew’s survey found that 34% of the respondents believe that male executives are better than women at assuming risk. Studies explain that most of the companies believe male CEOs can take the risk and manage them easily. Studies find that psychology also plays the vital role to in a person’s ability to lead. Mostly people thinks it is easier for men to get into top position. Two-Thirds of American overall believe men have an advantage and three-quarters of women say men have a better chance, Fairchild (2015). Pew’s survey shows in 2014, some 50% of women and 35% of men agree that many businesses aren’t ready to hire women for top executive positions. Although there are few number of the women CEOs, they are leading some big companies successfully. Other literatures shows the number of women in top MBA programs is increasing and they are leading the big companies.
Moreover, this research holds various research paper associate with Female and Male CEOs. We find the Fortune.com is the best resources for our literature from where we find more relative articles.