(Pixabay)

Gender pay gap widest at top of the corporate ladder, new report says

The gap at the top means that, on average, men earn about $950,000 more annually than women in similar executive positions

A new report on the country’s highest-paid CEOs is adding evidence to the argument that women face a “double-pane glass ceiling” at the top of Canada’s corporate ladder — first in getting to the executive suite and, once there, earning as much as their male counterparts.

The Canadian Centre for Policy Alternatives calculates that of the more than 1,200 named executive officers, or NEOs, at 249 publicly traded companies in Canada, women earn about 68 cents for every dollar made by their male counterparts.

READ MORE: ‘Daddy bonus’ common in B.C. workplaces

The study says the gap closes to 86 cents when looking at the wages of women and men in senior manager roles, almost in line with the country’s overall pay gap of 87 cents based on Statistics Canada calculations.

The gap at the top means that, on average, men earn about $950,000 more annually than women in similar executive positions.

The author of the report says the findings, while focused on the executive level where pay is already high, point to a larger equity issue.

“This is certainly about executives — that’s what we’re looking at — but I think it’s reflective of what’s happening throughout corporate Canada and the difficulties that women face in getting a fair shake even if they do have the qualifications,” said David Macdonald, the centre’s senior economist.

READ MORE: MLA calls for equal pay in the workplace

The findings are attached to the left-leaning centre’s annual report on the salaries of Canada’s highest-paid CEOs, who are estimated to earn what an average worker makes in a year by the time lunch rolls around Wednesday.

A review of corporate filings of publicly traded companies shows the top CEOs earned an average of $10 million in 2017, the most recent year available, or about 197 times more than the average worker.

An earlier analysis by The Canadian Press, cited in the centre’s report, found a similar gap among the country’s top 60 publicly traded companies. The review of records for 312 NEOs showed only 25 women and they earned an average of 64 cents for every dollar earned by male counterparts.

Interviews with about a dozen executives revealed a range of reasons.

They told The Canadian Press about how companies rely on the “old boys’ club” for executive searches. They also spoke about how outdated — and unchallenged — corporate culture in some companies leave women out of top jobs or fail to provide workplace support. The executives also mentioned a lack of confidence and risk-taking among women, an issue highlighted in academic research on executive pay.

Macdonald’s report zeros in on three issues.

First, few women are CEOs — about four per cent of Canadian CEOs and 10 per cent of top executives are women — where pay is the highest.

Second, “performance pay” given to top executives — stock, stock options or cash rewards based on how a company performs — is predominantly higher for men than women. Eliminating bonus pay from the equation shrinks the gap to 82 cents, or almost the gap in the wider workforce.

Finally, companies that have more women in their executive ranks tend to be smaller organizations, and therefore pay less than their larger counterparts, Macdonald said.

Federal legislation passed in the spring created a “comply or explain” model for diversity on corporate boards, rather than setting quotas for the number of women, for instance. Macdonald’s report, citing a decade of data from Norway where quotas have increased the number of women on boards, suggests quotas aren’t the answer to closing the pay gap.

Like us on Facebook and follow us on Twitter.

Just Posted

South Okanagan could be home to the area’s next craft brewery

A public hearing about the proposed brewery will take place at Penticton city hall on Aug. 6

A rainy July is normal for the Okanagan

Rainy days in July haven’t been seen since before 2014

Updated: Former home of accused Penticton shooter vandalized

Ex-wife of man who is accused of murdering four people had her house vandalized

Missing Penticton kayaker last seen on Okanagan Lake

Penticton RCMP are asking for assistance in locating a missing kayaker

What does it cost the City of Penticton to host Ironman?

Mayor believes businesses and other agencies support will help defer event costs

Athletes and volunteers ecstatic about triathlon’s return to the Okanagan

Race will take place in 2020 on Aug. 30 in Penticton

Injured humpback returns to waters near Comox a year later

Photographer spotted Ocular near Comox again and noticed the whale has been healing

Hergott: Medical cannabis and ICBC

ICBC might start reimbursing the expense of cannabis just like they do for prescription medications

Will you be celebrating national hotdog day with any of these crazy flavours?

The popularity of hotdogs spans generations, cultures

Survivor of near-drowning in B.C. lake viewing life through new eyes

“If I died that day, the baby wouldn’t know his dad,” said 31-year-old Mariano Santander-Melo.

PET OF THE WEEK: Kahlua needs a forever home

Cat lives at Critteraid animal sanctuary in Summerland

Bridgeman wins in Summerland low net competition

Summerland golfers compete in regular league play

‘Beyond the call’: Teen in police custody gets birthday surprise by B.C. Mountie

Unusual celebration started when Staff Sgt. Paul Vadik went to visit the teen in his Coquitlam cell

Trial date set for Kelowna dark web trafficking couple

Cassie Bonthoux and James Nelson face eight separate charges

Most Read