It's been a few weeks since I eagerly read #ANGELS article about Silicon Valley’s Equity Gap. Their study with Carta analyzed the gender gap in cap tables. In short, the study shows that women in tech companies receive far less stock (options/shares/RSUs) than men.
Women make up 33% of the combined founder and employee workforce but hold just 9% of the equity value. The other 91% belongs to men.
Soon after, ADP released their new study about the gender gap in bonus and incentive pay. Though ADP focused in a different area than the #ANGELS/Carta study, the results are similarly bleak. Women in the ADP study fare far worse when examining incentive pay and bonuses than their male colleagues.
The gender pay gap in wages/salary is well understood. Many people already know about Equal Pay Day (though you may not realize that Equal Pay Day for Latinas still hasn’t happened yet — it’s 1 November). To a compensation geek like me, these new studies are exciting. Both studies are based in large datasets with thousands of companies. And they both focus on relatively unexplored areas gender pay studies.
This is huge.
What does this mean for your company?
Innovative companies who want to grow and retain their best talent are already doing the work to address pay gaps around salary and wages. Earlier this year, Starbucks announced that after 10 years of focused work, they closed their gender pay gap. But you don’t need to be a giant corporation to care about pay equity — and to take action. To be a great company, you should think about pay equity in a multidimensional way.
Using Compaas, companies are improving multidimensional pay equity in their organizations. Even with a great HR Tech stack, you still have multiple sources of truth for target data, payroll, and stock administration. Compaas brings those sources of truth into a single view combined with important insights. This gives companies a comprehensive overview of employee compensation. Compaas does all the hard math, so you can easily see how different option grants at different strike prices add up — and how that stock is allocated.
There are a few ways to see a company’s stock compensation distribution by gender. For easy-to-share board-ready data, customers rely on our By The Numbers feature. This page lets you get fast answers to all those questions that seem like they should be simple to get, but aren’t.
A cornerstone feature of Compaas is how you can finally see stock and cash compensation together. This allows you to get deeper insights into total compensation and distribution.
Equity-adjusted Compa lets you compare — with both cash and stock in the mix.
The day after the #ANGELS/Carta study came out, I had a great catch-up call with one of our customers:
“We already dug into all of this using Compaas! It would have been a nightmare to do it otherwise.”