The gender pay gap no-one talks about
It’s not just base pay that women earn less of compared to men in the workplace. Equity-based awards, like stock option grants, are offered more often to men, new research finds.
But this figure only tells part of the story regarding gender pay inequality.
As a professor of business management, I have long studied compensation and inequality and know that base pay is only one way that women are disadvantaged in the workplace. Recent research by myself and colleagues shines a light on how female employees – particularly in the tech industries – likewise lose out when it comes to other forms of pay that receive far less attention: equity-based awards.
These are stock grants, in which employees are offered shares in the firm as a form of pay, and stock option grants that offer the right to buy company stock at a preset price in the future. The value of both are tied to the employing organisation’s market price.