Sunday, November 11, 2012

Why Are Male Company Executives Paid On Average Higher Than Female Execs?

Indeed, I would say that the glass ceiling has been completely broken when it comes to female executives in corporate America. The president of IBM, Hewlett-Packard, and so many other Fortune 100 companies are women. These women executives do an extremely good job, and in many cases they outperform their male counterparts. So, no longer is there a glass ceiling. Nevertheless, there seems to be a little bit of political debate between all this, and now folks are saying although women do get these higher jobs, they don't tend to make as much money as the male executives do. Yes, let's talk about this shall we?

Well, it turns out that men are much more upfront and somewhat overly assertive and even aggressive in negotiating pay, benefits, and stock options - much more than women seem to be (again on average) during the hiring process. In other words the companies may actually be offering the women executive applicants the same amount of money, but that offer is where the negotiations start, and often women during that hiring process will not attempt to negotiate like men do.

This could very well be learned psychological personality that happens in our society, and the stigma that if a woman is too aggressive, she might be called the "B-word" thus, in true diplomatic style she will hold short to secure the job. This is also a wise tactic, and it also shows behavioral and emotional restraint, which will also perhaps lead to her success if and when she does get hired in running the company. Male executives that are too aggressive tend to burn too many bridges, fail to build the proper relationships, and their aggressive stance often causes their downfall in the subsequent future.

What I'm saying is this; it may be that some of the reason, and certainly not the only reason that male company executives are paid more on average than female execs could have something to do with this reality. There actually are research studies published in academic psychology journals which suggest this might indeed be one of the problems. In that case it isn't the companies' fault, or that the glass ceiling isn't entirely broken, rather it might have something to do with the way that women executives handle themselves in negotiation during the hiring process.

In any case, I believe the gap between the amount that men are paid and women are paid will he eventually cease to exist, and we will see more female executives in the largest companies, and might I suggest that they might easily outperform their male counterparts merely because they have more emotional control, and are much better at building relationships in business. Something that's very much needed in today's modern corporations. Indeed I hope you will please consider all this and think on it.



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