Ending the Wage Gap
Sudip Datta, T. Norris Hitchman Endowed Chair in Finance; Abhijit Guha, assistant professor of marketing; and Mai Iskandar-Datta, Dean's Research Chair in Finance at Wayne State University's School of Business Administration, wrote a piece about the gender wage gap. They point out that despite studies showing a discrepancy between men's and women's wages, chances are that women's starting compensation compares well with what the company would offer a man who has similar skills and experience. But over time, women's pay will most likely start to lag that of their male colleagues, and after a while they'll be looking at a big gap. Their research, which looked at 1,598 newly hired chief financial officers at U.S. public companies from 1994 to 2007, found no evidence of a wage gap during the hiring year; in fact, with companies competing for female CFOs, the women's pay packages were typically a bit better than the men's. However, two years in, the women's total compensation trailed their male counterparts' by 4.5 percent to 5 percent.