Gender Pay Gap For Women Is Narrower Under Female CEOs – Law360

Report on Gender Pay Disparities and Leadership Impact in the Context of Sustainable Development Goals

Executive Summary: November 2025 Study

A study published on November 24, 2025, indicates a significant correlation between the gender of organizational leadership and the gender pay gap. The findings reveal that female-led organizations exhibit smaller wage disparities for women compared to their male-led counterparts. This data emerges at a time when corporate commitments to gender equality policies are perceived as increasingly fragile, posing a challenge to global development targets.

Analysis of Key Findings

• Leadership Impact on Pay Equity: The primary finding establishes that women employed in organizations with female leadership experience a reduced gender pay gap.
• Policy Commitment Concerns: The study notes a concurrent weakening of institutional commitments to gender equality policies, undermining progress.

Alignment with United Nations Sustainable Development Goals (SDGs)

The study’s findings directly relate to the achievement of several key Sustainable Development Goals. The data provides a critical measure of progress and highlights areas requiring intensified action.

1. SDG 5: Gender Equality
   • The report underscores the importance of Target 5.5, which calls for women’s full participation and equal opportunities for leadership at all levels of decision-making.
   • The reduced pay gap in female-led firms demonstrates a tangible outcome of achieving this target, directly contributing to the economic empowerment of women.
2. SDG 8: Decent Work and Economic Growth
   • The persistence of a pay gap, particularly in male-led organizations, conflicts with Target 8.5, which advocates for equal pay for work of equal value.
   • Achieving pay equity is fundamental to ensuring decent work for all and fostering inclusive economic growth.
3. SDG 10: Reduced Inequalities
   • The gender pay gap is a primary indicator of economic inequality, which SDG 10 aims to reduce.
   • The study suggests that promoting female leadership is a direct mechanism for reducing income inequality within and among countries, as outlined in Target 10.2.

Conclusion and Policy Implications

The evidence strongly suggests that advancing women into leadership positions is a critical strategy for closing the gender pay gap. This directly supports the frameworks of SDGs 5, 8, and 10. To counteract the observed fragility in policy commitments, institutions must reinforce and implement transparent policies on pay equity and leadership diversity to ensure sustained progress toward the 2030 Agenda for Sustainable Development.

Analysis of Sustainable Development Goals in the Article

1. Relevant Sustainable Development Goals (SDGs)

1. SDG 5: Gender Equality
   • The article’s core subject is the disparity in pay between genders and the impact of female leadership on this issue, which is central to achieving gender equality. The mention of “gender equality policies” directly connects to this goal.
2. SDG 8: Decent Work and Economic Growth
   • The discussion of “pay gaps” relates directly to the principle of equal pay for work of equal value, a key component of decent work for all.
3. SDG 10: Reduced Inequalities
   • The gender pay gap is a significant form of economic inequality. The article highlights how this inequality persists and is affected by organizational leadership, aligning with the goal of reducing inequalities within countries.

2. Specific SDG Targets Identified

• Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.
  • The article directly addresses this target by comparing outcomes in “female-led organizations” versus those “led by a male,” highlighting the impact of women’s leadership on gender equality issues like pay gaps.
• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.
  • The central theme of the article, “pay gaps,” is a direct measure of the failure to achieve equal pay for work of equal value, making this target highly relevant.
• Target 5.c: Adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels.
  • The article’s statement that “commitments to gender equality policies appear more fragile than ever” points to the importance and current vulnerability of the policies this target aims to strengthen.

3. Indicators for Measuring Progress

• Implied Indicator for Target 8.5 (Indicator 8.5.1): Average hourly earnings of female and male employees, by occupation, age and persons with disabilities.
  • The article’s reference to “pay gaps” implies the use of this indicator. A pay gap is calculated by comparing the average earnings of men and women, which is precisely what this indicator measures.
• Implied Indicator for Target 5.5 (Indicator 5.5.2): Proportion of women in managerial positions.
  • The article’s analysis relies on distinguishing between “female-led” and “male-led” organizations. This distinction requires data on the proportion of women in leadership and managerial roles, which this indicator tracks.

4. Summary Table of SDGs, Targets, and Indicators

Source: law360.com