Abstract
Despite there being a significant amount of practical and academic interest regarding the absence of gender diversity among top management teams (TMTs), the conditions under which it is most prevalent and why it persists remain poorly understood. We use abductive reasoning to propose a link between gender homogeneity in team composition and pay disparity in TMTs, investigating this relationship and its effects. Applying a multilevel compositional technique, we find that team composition associates with pay disparity, but that these effects are contingent on CEO gender. This pay disparity, in turn, triggers higher turnover rates, providing support for one explanation as of why a lack of gender diversity persists in TMTs. Finally, we discuss theoretical and practical implications of team compositional effects on TMT compensation and turnover.
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