More Vulnerable, Women CEOs Negotiate More Severance

When it comes to severance agreements for CEOs, the gender gap works against men. Women who lead publicly held companies negotiate severance packages more than half as rich as their male counterparts.

Good news? Not really, say researchers, who not only studied the size of these agreements, but also the reasons for the disparity.

“Pre-employment severance agreements reflect the heightened concern of prospective female CEOs that they are more vulnerable to being dismissed,” says Pierre Chaigneau, one of the three researchers whose study was published in November in the Journal of Management.

Writing about their findings, Chaigneau notes the statistics support women’s fears of being terminated.

“Female CEOs are 45% more likely to be fired than their male counterparts,” he says. “Previous research has shown that a man’s competence is often assumed in leadership roles while a woman’s competence is generally questioned. And female CEOs are more likely to be blamed when their organizations struggle, and are much more likely to be targeted by activist investors.”

To protect themselves, women negotiate higher severance agreements. For struggling organizations, their severance payout is higher still. Men got no premium for taking on a company with flagging performance.

The researchers found one exception: The severance gap was smaller in industries where women CEOs were more numerous or where there were women on the board.

“The takeaway for boards is that if they really want to bring women into the executive suite, they can use the severance agreement as a recruiting tool to compensate women for the obstacles that they will inevitably face,” Chaigneau says.

Photo by Dane Deaner on Unsplash

#WeAreGreenKey: Spotlight on Justin Stratton
Creative General Interest Green Key News Human Resources Professional Support Worklife

#WeAreGreenKey: Spotlight on Justin Stratton

Director of Green Key Pharma Receives RAPS’ Community Leadership Award
General Interest Green Key News Healthcare Leadership + Management Pharma Worklife

Director of Green Key Pharma Receives RAPS’ Community Leadership Award

5 Tips to Ace Your Virtual Interview
Accounting + Finance Architecture + Engineering Creative Financial Services General Interest Healthcare Human Resources Information Technology Leadership + Management Legal Support Marketing Technology Pharma Professional Support

5 Tips to Ace Your Virtual Interview

#WeAreGreenKey: Spotlight on Clare Wright
General Interest Green Key News Professional Support Worklife

#WeAreGreenKey: Spotlight on Clare Wright

Green Key Unlocked: The Future of Administrative Support
General Interest Green Key News Human Resources Professional Support Worklife

Green Key Unlocked: The Future of Administrative Support

#WeAreGreenKey: Spotlight on Tara Potter
General Interest Green Key News Pharma

#WeAreGreenKey: Spotlight on Tara Potter

Green Key Unlocked: Hiring Trends in Architecture, Engineering, and Construction
Architecture + Engineering General Interest Green Key News

Green Key Unlocked: Hiring Trends in Architecture, Engineering, and Construction

#WeAreGreenKey: Spotlight on Shandi Frederick
General Interest Green Key News Healthcare

#WeAreGreenKey: Spotlight on Shandi Frederick

#GreenKeyUnlocked: What’s New in the Tech Job Market?
General Interest Green Key News Information Technology

#GreenKeyUnlocked: What’s New in the Tech Job Market?

#WeAreGreenKey: Spotlight on Jordan Boyd
General Interest Green Key News Information Technology

#WeAreGreenKey: Spotlight on Jordan Boyd

How to Negotiate a Job Offer
General Interest Worklife

How to Negotiate a Job Offer

#GreenKeyUnlocked: Digital Tools and Technologies in Pharma
General Interest Green Key News Healthcare Marketing Technology Pharma

#GreenKeyUnlocked: Digital Tools and Technologies in Pharma

#WeAreGreenKey: Spotlight on Jordan Haas
General Interest Green Key News Pharma

#WeAreGreenKey: Spotlight on Jordan Haas

#GreenKeyUnlocked: Become a Medical Assistant
General Interest Green Key News Healthcare

#GreenKeyUnlocked: Become a Medical Assistant

#WeAreGreenKey: Intern Spotlight on Olivia Stein
General Interest Green Key News Healthcare Worklife

#WeAreGreenKey: Intern Spotlight on Olivia Stein

#WeAreGreenKey: Spotlight on Brett Braterman
General Interest Green Key News Healthcare

#WeAreGreenKey: Spotlight on Brett Braterman

#GreenKeyUnlocked: Accounting Advisory Consulting
Accounting + Finance Financial Services

#GreenKeyUnlocked: Accounting Advisory Consulting

#GreenKeyUnlocked: Let’s Get Creative!
Creative General Interest Green Key News

#GreenKeyUnlocked: Let’s Get Creative!

How to Quit Your Job (The Right Way)
General Interest Worklife

How to Quit Your Job (The Right Way)

Green Key Unlocked: Let’s Talk Marketing Operations
General Interest Green Key News Information Technology Marketing Technology

Green Key Unlocked: Let’s Talk Marketing Operations

Latest Blog Posts
View All Posts
#WeAreGreenKey: Spotlight on Justin Stratton

#WeAreGreenKey: Spotlight on Justin Stratton

Justin Stratton joined Green Key Resources as an Executive Recruiter in 2015. Six years later, he is a Staffing Manager...
Read More
Director of Green Key Pharma Receives RAPS’ Community Leadership Award

Director of Green Key Pharma Receives RAPS’ Community Leadership Award

Director of Green Key Pharma, Lindsey Summers, is a co-recipient of the Regulatory Affairs Professional Society (RAPS) 2021 Community Leadership...
Read More
5 Tips to Ace Your Virtual Interview

5 Tips to Ace Your Virtual Interview

Whether you’re preparing for a phone screen or a final stage interview, virtual interviews are now an inevitable component of...
Read More