Gender differences in executive compensation: Variation with board gender composition and time

Elkinawy, Susan; Stater, Mark

doi:10.1016/j.jeconbus.2010.05.003

Cited by 73 publications

(87 citation statements)

References 20 publications

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“…Next, we need to identify who were the key executive team members for this sample of banks by applying a similar coding method as Elkinawy andStater (2011) andBertrand andHallock (2001) and making a complete rank-ordering of all of the titles in determining which title is the highest (see Table 2). …”

Section: Data Sources and Sample Periodmentioning

confidence: 99%

Bank performance and executive pay: tournament or teamwork

Luu²

2015

Rev Quant Finan Acc

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3We investigate the relationship between the dispersion of executive pay and bank performance/valuation by examining two competing theories, the tournament theory (hierarchical wage structure) and the equity fairness theory (compressed wage structure). The key variable of executive pay dispersion is measured using a hand-collected dataset composed of 63 banks from OECD countries and 29 banks from developing countries. The dataset covers the period 2004 to 2012. By combining and modifying a translog profit function and a pay-dispersion model, we are able to address the potential problems of relying on reducedform estimation. In our subsample of developed and civil law countries, where bank performance is measured by either Tobin's Q or by the price-to-book ratio, the overall impact of executive pay dispersion is mostly negative, and we find supporting evidence for the equity fairness theory, except for very high levels of dispersion. There is a non-linear effect, as banks perform best when there is either very low or very high executive pay dispersion. For developing country sample banks, greater executive pay dispersion has a negative impact on bank profit. In our subsample of common law countries, however, we find no evidence of a significant impact of executive pay dispersion on bank performance. We conclude that lower executive pay dispersion, a proxy for teamwork, is mostly effective in enhancing bank performance in a significant section of sample banks, i.e., civil law and developing countries.

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Section: Data Sources and Sample Periodmentioning

confidence: 99%

Bank performance and executive pay: tournament or teamwork

Luu²

2015

Rev Quant Finan Acc

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“…Furthermore, Smith et al (2013) indicate that a female chairman on the board of directors has a negative effect on the chances for the promotion of a female to CEO. On the other hand, Matsa and Miller (2011) and Elkinawy and Stater (2011) find a positive spillover effect of the presence of female board members on the probability of having female top executives among the listed U.S. companies. To address this issue, we use the female CEO dummy as an additional explanatory variable in the estimations for the presence and the ratio of female directors.…”

Section: Female Directorsmentioning

confidence: 94%

“…4 Studies from the viewpoint of female labor mainly focus on the issue of the gender gap in compensation (e.g., Bell, 2005;Elkinawy and Stater, 2011;Bugeja et al, 2012) and discrimination in promotion by gender (Bertrand and Hallock, 2001;Elkinawy and Stater, 2011;Matsa and Miller, 2011;Gayle et al, 2012;Conyon, 2014). 5 On the other hand, the major interests of the studies in the field of finance and corporate governance are the effect of the female director on company performance (e.g., Carter et al, 2003;Wolfers, 2006;Adams and Ferreira, 2009;Gul et al, 2011;Ahern and Dittmar, 2012;Dezsö and Ross, 2012;Pathan and Faff, 2013;Matsa and Miller, 2013;Gregory-Smith et al, 2014) and the different management styles of female leaders (e.g., Gul et al, 2011;Huang and Kisgen, 2013;Matsa and Miller, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

What Types of Companies Have Female and Foreign Directors?

Morikawa

2014

SSRN Journal

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This paper analyzes the determinants of the presence and the number of female and foreign directors among Japanese companies. First, listed and long-established companies, subsidiaries, and unionized companies tend not to have female directors. On the other hand, owner-managed companies are likely to have female directors and chief executive officers (CEOs). Company size and foreign shareholdings do not have significant relationships with the presence of female directors. Second, while some past studies in the United States and European countries find evidence of "tokenism," whereby female-led companies do not appoint additional females as directors, we do not find such evidence among Japanese companies. Third, while foreign-owned companies and companies engaged in overseas activities tend to have foreign directors, other company characteristics, such as size and listing status, do not have systematic relationships with the presence of foreign directors.

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“…We focus only on CEOs because it is the most homogenous of all executive roles. Hence we do not need to define the different executive roles and assume that executives holding the same title across firms have the same responsibilities (Elkinawy and Stater, 2011;Bertrand and Hallock, 2001). An additional advantage of our study is, that in comparison to prior studies examining whether CEO (as opposed to all executives) pay differs with gender, this study uses a larger and more recent sample of CEO firm-years than examined in prior research.…”

Section: Introductionmentioning

confidence: 99%

“…The propensity score matching technique used in this study identifies control firms within year and industry using firm size (sales), board size and percentage of female directors as matching variables. We include the percentage of female directors as a control because previous research reports that firms are more likely to have female executives when the board comprises a greater proportion of female directors (Elkinawy andStater, 2011, Bell, 2005). Our results indicate that the use of propensity score matching identifies control firms that are statistically similar across multiple dimensions to firms with a female CEO.…”

Section: Introductionmentioning

confidence: 99%

Is There a Gender Gap in CEO Compensation?

Spiropoulos,

Bugeja,

Matolcsy

2011

SSRN Journal

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The gender pay gap generates significant political and social debate. This study contributes to this discussion by examining if a gender pay gap exists at the highest level of corporate management, the CEOs. Whilst previous studies have documented a gender pay gap for most levels of executives the findings with respect to CEOs are conflicting. In this paper we focus only on CEO's as it is the most homogenous of executive roles and does not require us to assume that executives with similar titles undertake identical roles. Our evidence is based on 291 US firm-years for the period of 1998-2010. We do not find any association between CEO pay and gender using both the total sample and a sample matched using propensity scores to control for firm characteristics. These insignificant results hold for total pay, salary and bonuses, and for different matching procedures and econometric specifications. Our results therefore indicate that women who rise through the "glass ceiling" to the level of CEO are remunerated at similar levels to their male counterparts.

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Gender differences in executive compensation: Variation with board gender composition and time

Cited by 73 publications

References 20 publications

Bank performance and executive pay: tournament or teamwork

Bank performance and executive pay: tournament or teamwork

What Types of Companies Have Female and Foreign Directors?

Is There a Gender Gap in CEO Compensation?

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