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Currently Browsing: Gender Pay Gap

Here’s to Hoping that Microsoft’s CEO Satya Nadella Learned Something About Equal Pay in His First Year

Today is the one-year anniversary of Microsoft’s announcement that Satya Nadella would become the tech giant’s new Chief Executive Officer.  Nadella had worked in Silicon Valley since 1992, and had been with Microsoft for 22 years when he was elevated to the position of CEO.  His first year compensation amounts to about $84 million.  Until October, Nadella’s tenure as Microsoft’s CEO was unremarkable.  But then came his remarks at the annual Grace Hopper Celebration of Women in Computing, the World’s largest gathering of women technologists.  The head of Microsoft chose this gathering of more than 8000 attendees, mostly women, to suggest that women were better off trusting “karma” than pushing for raises.  The incident raised the hackles of women inside and outside the technology world and immediately raised Nadella’s profile as well … but not in a good way. The CEO had been invited to speak at a plenary session, which was open to all conference attendees.  In response to a question the best ways for women to advance in corporate America, Nadella said that “[i]t’s not really about asking for the raise, but knowing and having faith that the system will actually give you the right raises as you go along.”  Nadella went on to say that not asking for a raise was “good karma.” Not too surprisingly, Nadella’s remarks immediately drew the ire of women, particularly as studies routinely show that women are paid less than men.  Indeed, some research shows that Nadella’s advice is exactly the opposite of what women need.  According to Linda Babcock, an economics professor at Carnegie Mellon University and leading researcher on women and pay negotiations, one of the reasons that women make less money is because they are less likely than their male counterparts to negotiate their compensation. There is at least one silver lining in the story of this CEO blunder — it appears that Mr. Nadella may have learned something from the experience.  The first sign of the lesson learned came in the form of a tweet.  Unlike many CEOs, he did not try to explain away the ignorant remarks.  Instead, within hours of leaving the stage, Mr. Nadella tweeted:  “Was inarticulate re how women should ask for raise.  Our industry must close gender pay gap so a raise is not needed because of bias.” Next came Nadella’s brief email to all Microsoft employees, in which he stated that his response to the question was “completely wrong.”  Yes, you read that right.  Within hours of making a foolish and...

Six Years After the Lilly Ledbetter Fair Pay Act and Still More Work to Do

Just about six years ago, President Obama signed his first piece of legislation — the Lily Ledbetter Fair Pay Act — to extend the time period in which an employee could file a claim for pay discrimination.  The Act overruled the United States Supreme Court’s decision in Ledbetter v. Goodyear Tire & Rubber, which Ledbetter said allowed her employer to pay her unfairly “long enough to make it legal.” At the time of its passage, President Obama said that the passage of the Act would “send a clear message that making our economy work means making sure it works for everyone.” Sadly, in the six years since the passage of the Act, the gender pay gap has – at best – barely budged.   Indeed, by some estimates, the wage gap has actually widened in the last few years. If the new Congress is truly committed to the goal of pay equity, concrete steps must be taken.  First, Congress should pass the Paycheck Fairness Act, which will strengthen the Equal Pay Act and help secure equal pay for equal work.  Second, Congress must act to increase the minimum wage, as women make up two-thirds of the country’s minimum wage earners.   Third, Congress should enact a universal, government-paid preschool program, as 10% of the wage gap is attributable to time that women spend outside of the workforce. While the Lily Ledbetter Fair Pay Act was a step in the right direction, Congress still has a lot of work to do to close the persisting wage gap.  Let’s hope by the Seventh Anniversary of the Act, we are closer to pay equity and an economy that truly works for everyone. This post, authored by Sharon Vinick, originally appeared in the CELA VOICE, a project of the California Employment Lawyers...

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