Power and Pay in the C-Suite

Inequality Inquiry (2021)

24 Pages Posted: 26 Jan 2022

See all articles by Afra Afsharipour

Afra Afsharipour

University of California, Davis - School of Law ; European Corporate Governance Institute (ECGI)

Darren Rosenblum

McGill University - Faculty of Law

Date Written: January 21, 2022

Abstract

The debate over executive pay has gripped corporate law scholars, regulators, and the national public for decades. A C-Suite position provides uniquely lucrative financial benefits to executives, especially to Chief Executive Officers (CEOs). Over the past few decades, CEO pay has risen spectacularly, as has debate regarding why this has occurred and whether policy should or can correct it. The reasons why CEO pay has increased exponentially are complex, and the solutions for reigning in executive compensation have been incomplete at best.

Yet one glaring fact about the C-Suite eludes much of the corporate governance literature and executive compensation policy reforms and proposals: the C-Suite, particularly the CEO role, has long been and continues to be dominated by men. Few women lead companies in corporate America. Furthermore, women often find themselves in “pink collar” C-Suite roles, such as head of human resources. Not only do such positions rarely lead to the top, but they rarely constitute the highest compensated positions within corporations.

This Essay begins to explore the correlation between executive compensation and men’s domination over senior executive roles, focusing on the CEO position. We delve into various theories that could help explain why men dominate the most lucrative role in corporate America. We argue that law and corporate governance need to account for these theories in designing solutions that address gender disparity in the CEO role.

Keywords: women, diversity, executive compensation, C-suite, chief executive officer, CEO

JEL Classification: K22

Suggested Citation

Afsharipour, Afra and Rosenblum, Darren, Power and Pay in the C-Suite (January 21, 2022). Inequality Inquiry (2021) , Available at SSRN: https://ssrn.com/abstract=4014809

Afra Afsharipour (Contact Author)

University of California, Davis - School of Law ( email )

Martin Luther King, Jr. Hall
Davis, CA CA 95616-5201
United States

HOME PAGE: http://law.ucdavis.edu/people/afra-afsharipour

European Corporate Governance Institute (ECGI) ( email )

Belgium

HOME PAGE: http://www.ecgi.global/users/afra-afsharipour

Darren Rosenblum

McGill University - Faculty of Law ( email )

3644 Peel Street
Montreal, Quebec H3A 1W9
Canada

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