The Gender Pay Gap in German Executive Boards

Table of Contents

1 INTRODUCTION

2 THEORETICAL FRAMEWORK

2.1 THE GENDER PAY GAP AND STATE OF THE ART

2.2 EXPLANATORY FACTORS FOR THE GENDER PAY GAP

2.3 MODERATING EFFECTS OF THE MINORITY GROUP’S SIZE

3 METHODOLOGY

3.1 PROCEDURE

3.2 SAMPLE

3.3 MEASURES

3.4 METHOD OF ANALYSIS

4 RESULTS

4.1 DESCRIPTIVE STATISTICS

4.2 DISCUSSION OF HYPOTHESES

4.2.1 The gender pay gap

4.2.2. Analysis of explanatory factors

4.2.3 Moderating effect of male proportion within the sector

4.2.4 Moderating effect of gender diversion on the board

4.2.5 Post-hoc analysis

5 DISCUSSION AND CONCLUSION

5.1 INTERPRETATION OF RESULTS

5.2 DISCUSSION AND RECOMMENDATIONS FOR FUTURE RESEARCH

5.3 STRENGTHS AND LIMITATIONS

5.4 CONCLUSION

Research Objectives and Themes

This thesis examines the existence and extent of the gender pay gap among top executives and chairpersons in German DAX- and MDAX-listed companies. The central research question investigates whether general theories regarding wage disparities—such as company size, position, and industry—apply to this homogeneous group, while additionally testing if the size of the female minority group moderates the gender pay gap.

• Analysis of the gender pay gap in top management
• Evaluation of explanatory factors (firm size, industry, hierarchical position)
• Impact of minority group size on labor market discrimination
• Investigation of differences between base and variable compensation
• Analysis of payout levels for female vs. male board members

Excerpt from the Book

Summary of Chapters

1 INTRODUCTION: Sets the stage by discussing the relevance of the gender pay gap in Germany and the rationale for focusing on top-management teams.

2 THEORETICAL FRAMEWORK: Defines the gender pay gap and reviews theories such as the human capital model, occupational segregation, and discrimination.

3 METHODOLOGY: Describes the Kienbaum dataset covering board member compensation in DAX and MDAX companies from 2014–2016 and the statistical regression approach.

4 RESULTS: Presents findings on descriptive statistics, the gender pay gap significance, and testing of moderation hypotheses regarding minority group size.

5 DISCUSSION AND CONCLUSION: Interprets the findings, offers a post-hoc analysis regarding variable compensation, and discusses limitations and future research needs.

Keywords

Gender pay gap, Top executives, German boards, Compensation, Human capital, Labor market discrimination, Diversity, Minority group, Variable compensation, Vertical segregation, Horizontal segregation, Payout level, Corporate governance, Gender equality, DAX/MDAX

Frequently Asked Questions

What is the core subject of the thesis?

The thesis focuses on analyzing the gender pay gap specifically among high-level executive board members in German companies listed in the DAX and MDAX indices between 2014 and 2016.

What are the primary fields of study involved?

The main thematic fields include labor economics, corporate governance, compensation management, and gender studies regarding occupational segregation and discrimination.

What is the main objective of the research?

The goal is to determine if traditional economic explanations for the gender pay gap (like firm size and position) hold true for top-level executives and whether the proportion of women (minority group size) influences the compensation gap.

What methodology was used for the analysis?

The author utilized linear regressions and t-tests on a dataset from Kienbaum Consultants International, consisting of 1,080 observations of board members to validate hypotheses.

What does the main body address?

The main part of the work provides a theoretical foundation, defines the empirical methodology, details the results of regressions on base and variable compensation, and conducts a post-hoc analysis.

Which keywords best characterize the work?

Key terms include Gender pay gap, Board compensation, Top management, Minority group, and Pay equity.

What were the findings regarding base compensation?

The study found no significant correlation between gender and base compensation, suggesting that salary gaps are more prominent in performance-based components.

Why is the variable compensation aspect significant?

The post-hoc analysis reveals that while negotiated target salaries for female and male executives are similar, the actual payout levels of variable compensation differ significantly, suggesting discrepancies in performance evaluation.