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This session aims at exploring gender differences in managerial compensation. In particular, we will present preliminary outcomes of our research project which offers a new explanation for the gender pay gap in leadership positions by examining the relationship between managerial bonuses and company performance. Drawing on findings of gender studies and leadership literature, we predict that the gender pay gap is a context-specific phenomenon with company performance having a moderating effect on pay inequalities. Employing a matched sample of 192 female and male executive directors of UK-listed firms we corroborate the existence of the gender pay disparities in corporate boardrooms. In line with our theoretical predictions, we find that bonuses awarded to men are not only larger than those allocated to women, but also that managerial compensation of male executive directors is much more performance-sensitive than that of female executives. The contribution of attributional and expectancy-related dynamics to these patterns is highlighted based on gender stereotypes and implicit leadership theories such as the romance of leadership. Gender differences in risk-taking and confidence are considered as potential explanations for the pay disparities.

The aim of the workshop is to stimulate discussion on the relevance of gender stereotypes and on the implications of the documented organizations' indifference to women's performance for the recognition and retention of female managerial talent.

Grzegorz Trojanowski is a Lecturer in Finance at the Xfi Centre for Finance and Investment, University of Exeter. He joined the Centre upon completion of his PhD in Business (Finance) at the CentER Graduate School (Tilburg University, the Netherlands) in 2004. His academic interests cover the areas of corporate finance, corporate governance, economics of transition, and gender studies. In his research, Grzegorz has studied the determinants of executive compensation and turnover as well as of corporate payout policies. He has also examined the governance role of shareholders and company directors. His other research topics include conflicts between large and small shareholders and the role of private equity firms in corporate restructuring.