Gender pay gap widens as women advance in their careers: IIM-A Study
The study was conducted with an objective to improvise gender balance amongst top management and senior executives in Indian companies as well as helping to accelerate career progression of women in senior management.
The Indian Institute of Management Ahmedabad (IIMA), conducted an event to share findings from a study titled ‘The Glass Ceiling: Research Report on Leadership Gender Balance in NSE 200 Companies’. The research was conducted by Professor Promila Agarwal, Associate Professor, Human Resource Management, IIMA.
The study was conducted with an objective to improvise gender balance amongst top management and senior executives in Indian companies as well as helping to accelerate career progression of women in senior management. Broadcasted live on IIMA’s YouTube channel: https://www.youtube.com/c/IIMA-OFFICIAL/videos the event commneecd with the opening remarks of Professor Errol D’Souza, Director, IIMA. Further, Professor Promila Agarwal presented the highlights of the study on the gender balance in NSE 200 companies in India. The professor revealed:
- The gender pay gap widens as women advance in their careers. Every step up in responsibility increases the pay gap for women
- The percentage of women in top management and senior executive positions is significantly lower than the percentage of women on the board of directors
- On average, women senior executives earn INR 85 for every INR 100 that men senior executives earn
- The average compensation paid to women senior executives is INR 1.91 crore and the average compensation paid to men senior executives is INR 2.24 crore
- Major companies that have high women in top management roles include HUL, Kotak Mahindra Bank, HDFC Bank, ICICI Bank, L&T Infotech
- An increase in the percentage of women at the board has not yet resulted in a significant increase in the percentage of women at the top management level.
The event also had industry stalwarts such as KV Kamath, Former Chief, New Development Bank of BRICS Countries and Ms Indra Nooyi, Former Chairperson and Chief Executive Officer, PepsiCo who shared their views and recommendations.
Arun Duggal, Chairperson ICRA also presented some of the recommendations to improve this gender balance. Duggal said Establishing clear diversity goals as part of company targets, Detailed diversity action plans that include setting up committees, training and increasing the numbers during recruitment processes, along with Governance measures like linking senior management performance evaluation with gender balance improvement, could improve gender diversity ion economic fields.
KV Kamath, Former Chief, New Development Bank of BRICS Countries said, “There are internal and external challenges and all of them come through two key things – biases and male assumptions or family stereotyping.” He added that organisations could achieve gender balance by removing existing biases around merit-based opportunities, roles that women can play in an organisation, equal pay, merit-based evaluation, etc.
In a fireside chat with students from IIMA, Indra Nooyi, Former PepsiCo CEO said it is important that companies revisit their approach towards women leaders. To ensure that women function at par with men, companies should take an ‘all talent on equal pay’ approach.
She suggested that organisations could achieve this by taking measures to put in place a critical mass of women leaders who could set the precedent and inspire other women. “Another most important thing is that men in power have to be educated. Men in society have to be educated not to discriminate against women,” she added.