• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

2

When SpaceX starts trading, some 'shareholders' will discover they own nothing at all

3

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

1

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

2

When SpaceX starts trading, some 'shareholders' will discover they own nothing at all

3

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
MPW

Management lessons from Sony’s gender pay gap

By
Daniel Roberts
Daniel Roberts
Down Arrow Button Icon
By
Daniel Roberts
Daniel Roberts
Down Arrow Button Icon
December 22, 2014, 5:18 AM ET
Hannah Minghella
Alix Colow. Photo shoot by Michael LewisPhotograph by Michael Lewis for Fortune

From a business perspective, one of the weightier bits of intel to come from the Sony hack has been the revelation of a huge pay gap between two top execs. According to documents posted by Fusion, Hannah Minghella, president of production for Columbia Pictures, is on target to earn $1.55 million this year. Her co-president, Michael De Luca, will take home $2.4 million.

News outlets were quick to decry the gender wage gap. “A Female Sony Executive Makes Nearly $1 Million Less Than Her Male Counterpart,” blasted Business Insider. Fusion noted that of the 17 Sony employees with base pay rates over $1 million, only one is a woman.

But De Luca, 49, came to his role at Sony Pictures with a bevy of awards and 25 years of experience in the industry, including stints as president of production at New Line and at DreamWorks. Minghella, 35, had her first production credit on The Talented Mr. Ripley in 1999. She spent three years as head of Sony Pictures Animation on her way to her current position. (This year, she made our 40 Under 40 list.)

So, did De Luca’s greater experience and track record warrant higher pay? Are his responsibilities more substantive? It is impossible to know what decision-making went on in this particular case. (Sony did not respond to requests for comment.)

This particular pay gap, however, raises an important management question: are there times when a pay disparity between a man and woman with the same title is reasonable?

Experts in workplace compensation note that employers aren’t required to pay two people the same salary simply because they hold the same title. In fact, the Equal Pay Act of 1963 gives employers wide berth. The federal law states that employers can set different pay for people with identical jobs if the reason is based on a person’s seniority, merit, quality or quantity of work, or some other factor not related to their sex.

Still, Roberta Liebenberg, former chair of the American Bar Association’s Commission on Women, cautions that employers need to be watchful of the overall pattern. If a gap between a man and woman isn’t an isolated instance, she says, there could be “inherent unconscious biases” at work.

The problem with unconscious bias is that it is often invisible to managers; they may rationalize inequities and fail to consider that their biases– unchallenged assumptions– may be influencing how they set employee pay. Unconscious bias is common in the legal field, Liebenberg says. In fact, female equity partners at law firms make 60 to 80 percent less than their male counterparts, an ABA study shows. The average gap is 68 percent, but the largest noted was 89 percent.

“If there’s a discrepancy between a woman and a man, it may be fine,” says Michele Mayes, general counsel at the New York Public Library and current chair of the ABA’s Commission on Women. “But there needs to be rigor around it. There needs to be an entire set of questions and checks to make sure it’s actually correct.” Too many employers, she says, quickly justify pay differences without fully investigating the situation or comparing the work of the two employees.

Hollywood gets particularly knocked for its problems, and indeed, there is only one female CEO of a Fortune 1000 entertainment company, Amy Miles of Regal. (See also: Women CEOs in the Fortune 1000, by the numbers.) But the gender pay gap is pervasive across industries, and all levels of organizations, says Anna Beninger, director of research at Catalyst, a nonprofit focused on issues facing female professionals.

In 2007, Catalyst began tracking 10,000 MBA grads from top business schools and found that women start out earning an average $4,600 less than men at their very first job. The gap keeps growing over time, and after only two to three years, Catalyst has found, it surpasses $40,000. “It’s a common myth that these gaps are only at senior levels, but in fact it begins on day one,” says Beninger. “Women don’t start out on equal footing.”

Mayes suggests that employers need to more closely scrutinize those pay gaps, and ask themselves key questions. How does a person’s higher salary fit in with the existing pay structure? Are two people performing the same work, but getting paid differently? (Beninger notes, “How got to their role no longer matters. What matters is their current job.”)

And finally, if one person is being paid less than a colleague with a similar job, how would you explain that salary disparity if it is discovered? “You can’t just hope the person won’t find out,” Mayes says. “In the age of the Internet and social media, [uncovering that info] is child’s play. And you are begging for trouble.”

From her own experience in hiring lawyers, Mayes says she has had to walk away from candidates who sought higher pay than existing employees in similar positions. “I can’t give it to them and then look the other person [who makes less] in the eye the next day,” she says. “Because even if they don’t know, I do.”

At the very least, the leaked pay scales at Sony Pictures have helped shine a light on a problem that goes well beyond Hollywood. “I’m glad this got leaked,” says Shelly Ulaj, founder of the nonprofit Women Empowered, which connects women professionals in the California area. “There has been a lot of movement towards gender equality in pay, in titles, but ultimately, we as women are still way behind men.”

About the Author
By Daniel Roberts
See full bioRight Arrow Button Icon

Latest in MPW

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in MPW

t
Arts & EntertainmentTaylor Swift
Taylor Swift is youngest woman to make Songwriters Hall of Fame at 36, but blew out her voice cheering for the Knicks
By Maria Sherman and The Associated PressJune 12, 2026
8 hours ago
Bridgit Mendler speaking at Fortune's conference
SuccessCareers
Ex-Disney star Bridgit Mendler reveals she was rejected hundreds of times by Hollywood—but it primed her for her current job as a space start-up CEO
By Preston ForeJune 12, 2026
8 hours ago
Melania launches Trump Accounts for foster kids — and Democratic governors want no part of it
MPWWhite House
Melania launches Trump Accounts for foster kids — and Democratic governors want no part of it
By Fatima Hussein and The Associated PressJune 12, 2026
16 hours ago
amodei
AIAnthropic
Anthropic is worth $965 billion and just hired 1,000 coaches for nonprofits: ‘The fox can’t guard the henhouse’
By Glenn Gamboa and The Associated PressJune 11, 2026
1 day ago
pope
EuropePope
‘Human dignity has no passport’: Pope rips into developed world for indifference to immigrants
By Nicole Winfield, Helena Alves, Renata Brito and The Associated PressJune 11, 2026
1 day ago
Bridgit Mendler speaks on stage at Fortune Brainstorm Tech 2026 in Aspen, Colorado.
Startups & VentureBrainstorm Tech
The space economy’s next frontier is in ground infrastructure, Northwood Space CEO says
By Sebastian HerreraJune 10, 2026
2 days ago

Most Popular

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
Environment
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
By Catherina GioinoJune 9, 2026
3 days ago
When SpaceX starts trading, some 'shareholders' will discover they own nothing at all
Investing
When SpaceX starts trading, some 'shareholders' will discover they own nothing at all
By Jim EdwardsJune 12, 2026
13 hours ago
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
2 days ago
Current price of oil as of June 12, 2026
Personal Finance
Current price of oil as of June 12, 2026
By Joseph HostetlerJune 12, 2026
11 hours ago
American taxpayers have spent $33 billion on sports stadiums. They got fewer seats—and higher prices
Success
American taxpayers have spent $33 billion on sports stadiums. They got fewer seats—and higher prices
By Catherina GioinoJune 11, 2026
1 day ago
Current price of oil as of June 11, 2026
Personal Finance
Current price of oil as of June 11, 2026
By Joseph HostetlerJune 11, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.