Bible Belt Area Shows Reversal in Women CEO Pay Gap: Brock Study Reveals
In a groundbreaking study published on June 1, 2025, researchers from Brock University, Canada, challenged the common belief that firms in states with stronger religious cultures would be less likely to appoint women as CEOs and pay them less. The study, titled "Religiosity and Gender Dynamics in Executive Leadership: Impact on CEO Appointments and Pay Disparities," was published in the Journal of Business Ethics.
The research team, led by Brock University Professor of Accounting Samir Trabelsi, also included Professor of Organizational Behaviour and Human Resource Management Dave Bouckenooghe and Professor of Accounting Kareen Brown. The study analysed 2,936 CEO transitions in U.S.-listed firms between 1998 and 2021.
Contrary to expectations, the findings revealed an "exceptionalism premium," suggesting that women CEOs in highly religious states may earn more than their male counterparts. This trend was particularly evident in the US states most frequently involved in the study period, including Texas, California, and New York.
However, it's important to note that both male and female CEOs in religious states earned less overall than their peers in secular states. Women CEOs in highly religious states earned more than their male peers, but they continued to be paid less than their male counterparts in more secular states.
Trabelsi suggests that some firms may promote women to signal diversity but fail to back that up with equitable pay, a practice sometimes described as performative diversity. He hopes the study will spark broader conversations about governance and gender equity.
The study found that companies with more women on their boards were significantly more likely to appoint a woman CEO, underscoring governance as a powerful lever for equity. Trabelsi also suggests that Canadian regulators and boards could strengthen diversity and pay equity initiatives to help more women reach CEO roles and ensure they are compensated fairly once there.
As of 2024, only about 5% of TSX-listed companies had a woman CEO, and Canadian women executives still earn about 40% less in total compensation than their male counterparts on average. With women continuing to be significantly underrepresented in CEO positions, understanding the factors that either create barriers or open pathways for their advancement is essential.
Religiosity, defined as the expression of beliefs and practices in institutionalized religion and their influence on social behaviors and cultural norms in local settings, was found to have no significant relationship with the appointment of female CEOs.
The study, co-authored by Brock University's then-master's student Maryam Vashahi (MSc '23), aims to contribute to the ongoing discourse on gender equity in corporate leadership and governance. Trabelsi, Vashahi, and their team's work underscore the importance of addressing pay disparities and ensuring that women are supported, compensated fairly, and empowered once they break the glass ceiling.
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