Executive Gender Pay Gaps in Nonprofit Organizations

• In Event: Current Topics in Not-For-Profit Accounting

Abstract

This study examines gender pay differences for nonprofit executives. While prior studies have examined top executive pay gaps in for profit firms, less attention has been given to nonprofits, a setting where female participation is higher and risk aversion explanations for the pay gap should be less likely to exist. Using data from IRS 990 filings, we nevertheless find that female nonprofit executives receive lower total compensation than their male counterparts. This finding is robust to alternative regression specifications controlling for potential selection bias and functional form misspecification. In additional analysis, we find that greater female presence on the board of directors and in the CEO position mitigates the pay gap. Lastly, we examine specific settings that plausibly constrain executives’ ability to negotiate their compensation and observe that the gap is smaller where opportunities to negotiate are lower.

Authors

• Amanda Marino, Drexel University

• Curtis Hall, Drexel University

• Andrew Finley, Claremont McKenna College