Board Gender Diversity and Nonprofit CEO Compensation: Implications for Gender Pay Gap

Lee, Young‐joo

doi:10.1177/08997640231158596

Nonprofit and Voluntary Sector Quarterly

2023

DOI: 10.1177/08997640231158596

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Board Gender Diversity and Nonprofit CEO Compensation: Implications for Gender Pay Gap

Young‐joo Lee

Abstract: This study examines how gender diversity on nonprofit boards relates to chief executive officer (CEO) compensation using data of 1,835 501(c)(3) organizations with the GuideStar Platinum Seal of Transparency. The analysis reveals a positive association between women’s representation on a governing board and female CEO compensation until women’s proportion reaches 82%. By contrast, there is a negative relationship between women’s representation on boards and male CEO compensation. Overall, the findings suggest … Show more

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2024

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Cited by 4 publications

References 58 publications

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Women in the pulpit: Characteristics of protestant churches led by a female pastor

Lee

2024

Nonprofit Mgmnt & Ldrshp

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This study examines how congregational characteristics of a Protestant church relate to having a female pastor, using the glass ceiling and glass cliff theories. The analysis of the 2018–2019 National Congregational Study and the National Survey of Religious Leaders linked data shows that churches with a greater number of participants are less likely to have a female pastor, implying that the glass ceiling is more pervasive in larger congregations. The results also reveal that churches with stagnant or declining revenues are more likely to have a female pastor, which is consistent with the glass cliff theory. Churches with a greater level of racial diversity and those located in urban areas are more likely to have a female pastor, suggesting a link between sociodemographic diversity within a congregation and women's congregational leadership. These findings can be applied to understanding the gender gap in nonprofit leadership in general.

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Women in the pulpit: Characteristics of protestant churches led by a female pastor

Lee

2024

Nonprofit Mgmnt & Ldrshp

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Representation of women and people of color on nonprofit boards and CEO gender and race

Lee

2024

EDI

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PurposeThis study examines how the representation of women and people of color on nonprofit boards relates to CEO gender and race.Design/methodology/approachThis study uses the 2020 data of 501(c)(3) nonprofit organizations in a Southeastern U.S. state. It employs the seemingly unrelated bivariate probit regression to simultaneously estimate the two equations for CEO gender and race.FindingsThe findings show that the proportion of board members of color is positively associated with having a CEO of color and a female CEO. The proportion of female board members is positively associated with having a female CEO, but not with having a CEO of color.Practical implicationsThe lack of a positive connection between women’s representation on the board and having a CEO of color may be attributable to the pervasive and systematic Whiteness in nonprofit leadership. The findings suggest that nonprofit boards reflect on the current executive hiring policies and practices to address existing racial biases or barriers.Originality/valueThis study’s findings reveal that the descriptive representation of women and people of color in the governing board is closely linked to their substantive representation in the form of selecting a woman or a person of color as the CEO. The findings also suggest an interconnection between the representation of people of color on the board and having a female CEO. However, women’s representation on the board is not related to having a CEO of color.

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Nonprofit Chief Executive Compensation: Implications of Board Governance Activities

Bernstein,

Fredette,

Postlethwaite

2024

Compensation & Benefits Review

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Using secondary data collected as part of a national survey of nonprofit organizations, this research examines compensation outcomes of 704 nonprofit Chief Executives (CEO), integrating and social and performative aspects of governing/governance to explain compensation (in)equity. Theorizing governance as a socially complex and functionally consequential arena, we examine the impact of social categorization and identity fit between CEO Ethno-Racial Demography and Board Ethno-Racial Variety prior to overlaying the influence of three forms of governance activity: Fiduciary Oversight, Internal Awareness, and External Engagement. We employ serial multiple mediation regression analysis to test direct and indirect effects of demographic diversity and governance activity for nonprofit CEO compensation outcomes. We found compensation of ethno-racialized CEOs is higher when their organizations have diverse boards. Therefore, boards of directors must be cognizant of board composition, the potential for subjectivity and bias, and the impact these factors can have on CEO compensation and compensation equity.

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Board Gender Diversity and Nonprofit CEO Compensation: Implications for Gender Pay Gap

Cited by 4 publications

References 58 publications

Women in the pulpit: Characteristics of protestant churches led by a female pastor

Women in the pulpit: Characteristics of protestant churches led by a female pastor

Representation of women and people of color on nonprofit boards and CEO gender and race

Nonprofit Chief Executive Compensation: Implications of Board Governance Activities

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