The Ultimate Power of Religiosity-Local Religiosity and CEO Gender Pay Gap

Abstract

In this study we focus on the effect of local religiosity on the probability of hiring female incoming CEOs while transitions, and how local religiosity relates to female CEO compensation. Given that all major religions facilitate patriarchy contributing to gender stratification, justifying men’s hierarchical superiority to women, we predicted that local religiosity is negatively related to appointing and remunerating female CEOs. We found no evidence that local religiosity relates to the probability of appointing a female incoming CEO. Moreover, using both a longitudinal as well as propensity scored matched sample, results indicate that local religiosity slightly negatively relates to the level of CEO compensation for male CEOs as opposed to the positive and significant association with the level of female CEO remuneration. Contrary to predictions, local religiosity shifted pay discrimination against female CEOs in secular states to their favor in religious states.