The underrepresentation of women at leadership roles is increasing drastically. In the last fiscal year, women executive directors were found to have earned 45% less than their male counterparts. The male CEOs and CXOs had bigger salary increments, whereas the salaries of women EDs remained almost stagnant.
In an analysis of PrimeDatabase, it was found that the pay gap between male and female directors doubled in FY19.
This reflect on increasing biasness against women CXOs, affecting their career growth and opportunities. Or simply, men choose more men.
Kiran Mazumdar-Shaw, the chairperson of Biocon argued that unfavorable biasness against the women counterpart increasing on reaching the middle- management level.
He also said that the selection of more men is natural as the major selectors are men.
Data also suggest that wage inequalities become more severe with the rise of experience.
According to the Monster India Wage Index Report 2018, men and women with 0-2 years of tenure earned almost identical median wages (Rs 121.25 and Rs 120.28, respectively). In the tenure group of 3-5 years of experience, the pay gap was a moderate 3%. However, in the tenure group of 6-10 years, men earned a 13% higher median wage than women, while men with 11 or more years of tenure earned 10% more than women.
This needs to change, said Harsh Goenka, chairman, RPG Enterprises. “I always thought one does not pay salary based on gender,” he said. The pay disparity “shows the mindset and that needs to change. Companies need to have multidimensional approach in hiring, retention and development of women”.
As per nseinfobase.com data, the median salary comparison of male and female executive directors showed that in FY19 women earned 45% less, which was double the pay gap in FY18 when women directors took home 22.5% less than men.
Comparison of the average salaries of executive directors showed that women earned 30% less than men in FY19, compared with a pay gap of 24% and 20% in FY18 and FY17, respectively.