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The wage gap has become a recent discussion with the growth in popularity of celebrations such as Women’s Equality Day and Equal Pay Day. However, this not just a hashtag cause, it’s a social issue with the potential to affect future generations. According to the Institute for Women's Policy Research (IWPR), if the pace of change in pay parity continues at its current rate it will take 41 years—or until 2059—for women to see equal pay.
And now, conversations and research are not just focused on the gap in wages. There is also the equity gap. In September, Carta, a startup that manages and transfers securities for companies, released what it called the first public study of cap table data, listings of owners or shareholders in a company. The study revealed that women hold 9 percent and men hold 91 percent of startup equity.
A Fortune article that assessed the findings of the study said, “Part of the problem is that early employees receive larger equity packages—and early-stage startups typically don’t pay much attention to diversity while hiring. It’s only when companies reach the growth stage of around 400 employees—and equity packages have dwindled—that women come close to the 40 percent mark of a company’s makeup.”
Those early employees, who are rarely women, also seldom move up the ranks as the company grows. The article pointed out, “in later stages, women are underrepresented in the highly compensated C-suite.”
The purpose of sharing such information is not to place blame or make way for hopelessness. The purpose is to spark ideation. How can you or your company strategically develop inclusive practices that will create a more equitable future for everyone?
As PHCPpros.com continues to tell the stories of women in the industry, we will also be seeking best practices for making the industry one that aligns with and shows support to women beyond initiatives, roundtables and ceremonies. If you have insights on tangible work being done, reach out and let us know. It would be our pleasure to tell the story or make room for you to tell it yourself.