Women in VC and Compensation — An Analysis
Pitchbook recently posted an article on the gender pay gap in private equity and venture capital firms and their findings were extremely insightful. To summarize the findings, cash compensation was comparable for both men and women at nearly every level, with women making significantly more than men at upper management levels. However, carried interest compensation tells an extremely different and troubling story.
Melissa Taunton, a partner at NEA says,
“It’s become increasingly clear that addressing the gender imbalance in venture capital is not simply a function of hiring more women—although that’s a good start. We must also examine the ways in which we mentor, evaluate, promote and compensate women investors, and take measurable steps to improve our practices.”
The article discusses the possibility for the data to reflect past industry practices, rather than future ones, but the data still speaks to the need for awareness and proactive measures to combat the gender gap, particularly in the private equity world, which in the past was a well-know boys’ club. Women are starting to leave their mark on the industry and fair pay should reflect that. Read the full article for more information.