Gender gaps at the top: Does board composition affect executive compensation?

Cook, Alison; Ingersoll, Alicia R.; Glass, Christy

doi:10.1177/0018726718809158

Cited by 53 publications

(60 citation statements)

References 77 publications

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“…In general, the issue addressed in most of the scientific articles that deal with this subject is whether the presence of women in boards of directors is associated with improved company performance [20], which is measured by financial results [21], the company's level of debt [22] and corporate social responsibility [23]. Other authors have studied the subject from different perspectives, including: the gender pay gap [24], work-life balance [25] and gender quotas [26]. In order to understand the main subject of study and pinpoint noteworthy articles from the selected literature, three time periods have been identified: the first period spans from 1994 to 2005, the second period from 2006 to 2012, and the third period from 2013 to 2020.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Their research results are clear: the stock market would react positively to the announcement of women being appointed to boards of directors, as it was believed that they would provide added value, reaffirming that the approved legislation made sense and contributed to the main objective. Other articles analyze the differences between men and women in order to try to explain why the results may be different when the person directing a company is either male or female [19,24,28]. Along these lines, academics such as [2] demonstrate in their studies that women are less prone to taking risks, have different priorities and are less concerned with power.…”

Section: Second Period (2006-2012)mentioning

confidence: 99%

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Gender Diversity in Boards of Directors: A Bibliometric Mapping

Sánchez‐Teba

Benítez-Márquez

Porras-Alcalá

2021

Journal of Open Innovation: Technology, Market, and Complexity

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The literature on gender diversity in boards of directors has expanded significantly in recent years, due to the fact that women are increasingly holding higher management positions within the company hierarchy, clearly demonstrating that certain characteristics of women have a positive impact on different areas within the company. The objective of this paper is to analyze scientific articles on the presence of women in boards of directors, based on a literature review, in order to learn about the evolution of this concept over time. The search conducted for this paper produced 300 documents from the Web of Science, with a final total result of 168 documents after passing the initial results through various filters. VOSviewer software was used to analyze the information, which enabled the creation of bibliometric citation, co-citation and co-word maps. The results reveal the most relevant authors and studies on this subject and identify the most current studies, the main topic of which deals with sustainability and corporate social responsibility, in addition to highlighting the characteristics of women that are of vital importance to boards of directors within the current context: empathy, open innovation, concern for the needs of interest groups and a heightened perception of risks.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Second Period (2006-2012)mentioning

confidence: 99%

Gender Diversity in Boards of Directors: A Bibliometric Mapping

Sánchez‐Teba

Benítez-Márquez

Porras-Alcalá

2021

Journal of Open Innovation: Technology, Market, and Complexity

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“…If firms really attempt to stimulate change in executive gender pay gap through board diversity, then they need to empower women directors or executives and place them in the key leadership positions. It is found that females' integration on the board of directors and on the compensation committee has no significant impact on lessening the executive gender compensation gap (Cook et al, 2019). However, when females affect compensation decisions through the role as the chair of the compensation committee, the executive gender compensation gap is nearly diminished.…”

Section: Impact Mechanisms Of Female Executives On Pay Gapmentioning

confidence: 94%

How can Female Executives Shape the Effectiveness of Executive Compensation?- A Multi-Dimensional Approach

Zhang

Yang

2019

Journal of Social Economics Research

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This paper attempts to build and analyze a conceptual model to systematically study the impact mechanism of female executives on the following dimensions of executive compensation including pay-performance sensitivity, executive pay level, executive pay component and pay gap from multiple theoretical perspectives of managerial power, principal-agent and employee discrimination theory, etc. The paper concludes as follows: (1) seven specific impact mechanisms of female executives on executive payperformance sensitivity have been identified including enhancing monitoring role, lowering insider trading, increasing remuneration disclosure and adopting more balanced setting rules; (2) six specific impact mechanisms of female executives on executive pay level have been clarified such as reducing corporate tax avoidance, mitigating unethical earnings manipulation behavior or accounting fraud behavior and choosing lower level of leverage ratio；(3) it is found that female executives would enhance executive pay components diversity by adding additional pay components to compensation package, mainly including social responsibility-based pay, environmental performance-based pay, innovation performance-based pay and reducing extra unethical pay due to financial statement fraud or earnings manipulation and (4) female executives would enlarge executive-employee compensation pay gap, moderate the gender compensation gap among employees and narrow executive compensation gap due to the female executives' need for affiliation, etc. Taking 499 Chinese A-share listed companies selected in the corporate social responsibility rating report issued by Rankings CSR Ratings from 2012-2016 as the research sample, we examine the above theoretical propositions by adopting the multiple regression method based on OLS. Contribution/Originality: This paper's primary contribution is finding seven specific impact mechanisms of female executives on executive pay-performance sensitivity, six specific impact mechanisms of female executives on executive pay level and female executives would enhance executive pay components diversity.

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“…A large-scale meta-analysis revealed that the gender gap for performance evaluations and rewards (e.g., pay and promotion) was smaller in industries where women were more strongly represented at the upper echelons (e.g., executive and senior managerial levels; Joshi et al, 2015). Similarly, Cook et al (2019) found that when female board members held positions of greater influence (i.e., chaired the compensation committee), the gender pay gap among the top management team was reduced.…”

Section: The Moderating Role Of Board and Compensation Committee Gender Compositionmentioning

confidence: 99%

“…To provide further insight as to why female CEOs receive lower compensation relative to male CEOs for external board memberships, we conducted supplemental analyses. Specifically, some prior research revealed that female representation on the board may not be sufficient to ensure equitable compensation, but rather these women need to be influential (e.g., Cook et al, 2019). In other words, perhaps if T A B L E 6 Supplemental analysis: The moderating impact of female board power female directors generally hold powerful roles on the board, reflecting their position at the table is legitimate and merited rather than as symbolic tokens, this may mitigate the gendered effect of CEO external board memberships on CEO pay.…”

Section: Supplemental Analysesmentioning

confidence: 99%

A vicious cycle of symbolic tokenism: The gendered effects of external board memberships on chief executive officer compensation

Malhotra

Shen

Zhu

2021

Human Resource Management

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Integrating theoretical perspectives on tokenism and perceived preferential selection, we explore whether the relationship between chief executive officers' (CEOs') external board memberships and CEO compensation is gendered. Based on recent pressures to diversify corporate boards, we theorize that female CEOs' memberships on external boards will result in less monetary compensation relative to male CEOs due to concerns of organizational decision-makers that female CEOs generally inhabit token or "symbolic" positions of limited value. Additionally, we present competing hypotheses (i.e., mitigation vs. exacerbation) regarding how this devaluation will be affected by female representation on the board of directors and compensation committee, respectively. Using a panel sample of 12,464 firm-year observations comprising of 1,805 unique firms and 2,782 unique CEOs, the relationship between CEO external board memberships and compensation is indeed weaker for female compared to male CEOs. Furthermore, this devaluation primarily occurred in organizations where there was stronger (vs. weaker) female representation on the board of directors or compensation committee. However, supplemental analyses revealed that this differential devaluation was mitigated when female executives on the board held greater power (i.e., chaired important committees), highlighting the importance of moving beyond mere representation to ensuring influence on boards for female directors. K E Y W O R D Sboard gender composition, board networks, chief executive officer compensation, chief executive officer gender, tokenism | INTRODUCTIONAlthough women continue to be underrepresented at the upper echelons of major firms, there is evidence of slow progress. Specifically, over the past three decades, the percentage of female chief executive officers (CEOs) has tripled, such that women now constitute 6% of CEOs in the S&P 500 (Catalyst, 2020). Thus, although women still face significant barriers to attaining top leadership roles, a subset of women have been successful in reaching the pinnacle of organizations. Unfortunately, emerging research indicates that becoming the CEO is not a panacea against gender-based biases for women.Research reveals that relative to male CEOs, female CEOs are more likely to be dismissed (Gupta, Mortal, Silveri, Sun, & Turban, 2020), become targets of shareholder activism (Gupta, Han, Mortal, Silveri, & Turban, 2018), and treated in a sexist manner by their board chairs

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Gender gaps at the top: Does board composition affect executive compensation?

Cited by 53 publications

References 77 publications

Gender Diversity in Boards of Directors: A Bibliometric Mapping

Gender Diversity in Boards of Directors: A Bibliometric Mapping

How can Female Executives Shape the Effectiveness of Executive Compensation?- A Multi-Dimensional Approach

A vicious cycle of symbolic tokenism: The gendered effects of external board memberships on chief executive officer compensation

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