DURHAM, N.H.—Men in executive leadership positions receive over $500,000 more in severance compensation than women, according to researchers from the University of New Hampshire and the University of Nebraska at Omaha. Researchers say a gender pay gap exists in average severance compensation packages between male and female executives in large, publicly traded American companies.
The study, recently published in the Journal of Business and Psychology, examines severance packages at the executive level through a series of analyses. After accounting for other plausible reasons, a gender-based gap in severance payouts exceeding $500,000 in favor of male executives was identified. Researchers found that executive severance agreements, which often include benefits received upon termination “without cause,” can be prone to bias due to ambiguity in how they are determined. Such ambiguity opens the door for preconceived notions and biases tying gender to performance, personality traits and expectations.
