The Association Between Gender-Diverse Compensation Committees and CEO Compensation

Bugeja, Martin; Matolcsy, Zoltan; Spiropoulos, Helen
December 2016
Journal of Business Ethics;Dec2016, Vol. 139 Issue 2, p375
Academic Journal
We examine the association between gender-diverse compensation committees and CEO pay and find that CEO compensation levels are negatively associated with gender-diversity of the compensation committee, but not gender-diversity of the board. Furthermore, we find that excess CEO compensation is negatively related to subsequent return on assets for firms with an all-male compensation committee but not for firms with a gender-diverse compensation committee. These results suggest that CEOs do receive some level of excess compensation which can be mitigated by having one or more females on the compensation committee.


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