Gender gap in CEO compensation after the global financial crisis

Abstract

This study examines gender differences in CEO compensation in the U.S. after the 2007-2008 global financial crisis, focusing on risk preferences. Contrary to the notion that women prefer less risky pay structures, female CEOs receive higher total compensation than their male counterparts, driven by greater performance-based incentives. Female CEOs also do not demand a risk premium in fixed pay to offset this risk. These findings suggest that risk preferences are not inherently gendered but context-dependent, shaped by market forces and governance structures, with the post-crisis demand for leadership diversity positioning female CEOs as valuable assets. Our results highlight the contextual nature of gender differences in pay and call for further research on workplace dynamics to address organizational gender disparities.