Who Gets the Carrot and Who Gets the Stick? Evidence of Gender Disparities in Executive Remuneration

This paper examines the relationship between managerial bonuses and company performance. In a matched sample of 192 female and male executive directors of UK listed firms, the bonuses awarded to men are not only larger than those allocated to women, but the managerial compensation of male executive directors is also much more performance-sensitive than that of female executives. The contribution of attributional and expectancy-related dynamics to these patterns is discussed, as are the implications of the organizations' indifference to women's performance for the recognition and retention of female talent.

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