(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

Revelstoke resident receives award for dedication to community

Jane McNab has volunteered in Revelstoke over 20 years

The Carbons playing Revelstoke Summer Street Fest opening night

The Revelstoke Pipe Band will start the performance off at 6:30 p.m.

CSISS hosting workshop for professionals

Learn techniques for recording and reporting invasive plants using the Invasive Alien Plant Program

Revelstoke roads and weather: high 23 degrees today

There are three active fires in southeastern B.C.

Letter to the editor: Thank you Revelstoke!

Daring Greatly thanks community for their welcome

VIDEO: Tributes flow on 10th anniversary of Michael Jackson’s death

Jackson received a fatal dose of the anesthetic propofol on June 25, 2009. He died at age 50

Delta cat severely injured in animal trap was likely stuck for days, owner says

Blu, a three-year-old house cat, suffered severe damage to his hind leg after being stuck in trap for days

Alleged Okanagan shoplifter tracked down by RCMP

Vernon retail store’s loss prevention officer’s description of suspect helps lead to arrest

District staff consider updated GHG emission reduction targets in Summerland

Residents suggest plastic bag ban, cohousing, having new developments be “solar ready” at open house

No lawyer for man involved in Kelowna crime spree

Stephen Ear Skinner had his court date moved to July 9

HIV tests now part of most Emergency Department blood work

There are up to 15 per cent of “HIV-positive individuals who are unaware of their HIV status.”

Man charged in Salmon Arm church shooting returns to court

Provincial Court judge allows two-week adjournment in murder, assault changes

VIDEO: Killer whale steals fisherman’s catch off North Coast

Fishing duel results in eager orca snagging salmon in Prince Rupert

Big changes to food services at UBC Okanagan

Healthy, high-quality food on the menu as UBCO staffs up for in-house operations

Most Read