Start-up founders and investors unite to close the gender pay gap in pre-IPO companies by 2027.

• By 2027, the goal of the newly formed coalition, Organizations for Pay Equity Now (OPEN Imperative), is to eradicate the gender pay gap among pre-IPO start-ups.
• Over 200 founders, CEOs, and investors have joined the coalition, including Prezzee, Landed, Hearken, and newly public Nextdoor, according to OPEN Imperative.
• The group's first year of operation will see a 60% reduction in gender pay gaps among its members.
• In 2020, full-time, year-round workers aged 15 and older in the U.S. earned 83 cents for every dollar men made, according to Census Bureau data.

An organization called OPEN Imperative was launched on Tuesday with the objective of eradicating the gender pay gap among pre-IPO start-ups by 2027.

Over 200 founders, CEOs, and investors have joined the coalition, according to OPEN Imperative. Among the members are Prezzee, a digital gift card company; Landed, a fintech that assists homebuyers; Hearken, a newsroom consulting firm; and newly public Nextdoor, a neighborhood-based social networking platform.

Emily Sweet, lead of OPEN Imperative, stated in a panel on Monday that what makes working with pre-IPO companies so thrilling is that they are the fastest-growing companies globally.

Sweet stated that these future CEOs and founders of larger enterprises should incorporate these practices from the beginning to ensure their continued growth and impact.

The group's first year of operation will see a pledge by OPEN Imperative members to reduce gender pay gaps by 60%. Members will receive a confidential audit of their gender pay equity performance.

The most commonly cited barrier to closing the gender pay gap among business leaders is the lack of access to compensation data, according to a survey of 500 start-up executives by OpenComp.

To bring about change, uncover the gap and utilize the data. As OpenComp CEO Thanh Nguyen stated, "If you hide or ignore the data, you won't be able to make any progress."

During Monday's panel, it was discussed that best practices include disclosing pay ranges initially and avoiding inquiries about a candidate's past salary.

In the U.S., Equal Pay Day falls on Tuesday, symbolizing how long women must work to earn what men made the previous year.

In 2020, full-time, year-round workers in the U.S. earned 83 cents for every dollar men earned, according to Census Bureau data. However, women of color experienced an even wider wage gap, as reported by AAUW.

If the coalition achieves its objective of decreasing pay disparities by 60%, Equal Pay Day for its members could be moved up to January 31, 2023, which is 43 days earlier than this year.

According to C. Nicole Mason, OPEN Imperative advisory board member and president and CEO of the Institute for Women's Policy Research, equitable compensation is beneficial for both employers and employees as it helps retain employees, increases productivity, and fosters goodwill between employees and employers.