Eliminating the Gender Pay Gap

Book excerpt: This case examines Gap Inc. as a trailblazer in gender pay equality and a focus on investing in gender equity in leadership. The husband and wife founders who opened the first Gap store in San Francisco in 1969 did so as equal partners and grew the company together in an era of limited female business leadership. The Gap's inclusive corporate culture helped grow the company into a global brand and publicly traded company comprised of five divisions: Gap, Banana Republic, Old Navy, Athleta, and Intermix. This case provides a historic perspective of pay in the U.S. and defines methods for accurately measuring if a company's salaries are comparable. It identifies both the barriers to equal pay, as well as the practices and policies companies can implement to achieve equal pay and attain higher representation of female leadership. Also, this case illustrates how Gap has achieved equal pay and continues to ensure it, including through annual pay analysis, the prevalence of sponsorship, family-friendly policies, and more.