Resilient leadership: Closing the internal pay gap

Penghua Qiao, Yidan Xiu, Anna Fung and Hung-Gay Fung

Finance Research Letters, 2025, vol. 77, issue C

Abstract: This study investigates how resilient leadership affects pay equity within Chinese firms. Our analysis reveals that resilient leadership significantly narrows the internal pay gap between top executives and average employees. By hiring more highly skilled labor and reducing excessive executive compensation, resilient leaders effectively address pay equity issues. Improvements in the pay gap are particularly pronounced in firms with gender-diverse boards, highly educated top management teams, greater media exposure, and those situated in regions with high social trust. These findings contribute to ongoing discussions about the influential role executives can play in enhancing pay equity within organizations.

Keywords: Pay gap; Resilient leadership; Labor capital structure; Executives’ excess compensation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325003526

DOI: 10.1016/j.frl.2025.107089

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