Abstract
The notion that female directors are better disposed to protect shareholders’ interests has brought boardroom gender diversity into the limelight. Echoing these emerging trends, this paper analyzes the relationship between board gender diversity, i.e., proportion of female directors on the corporate board, and Chief Executive Officer’s (CEO) compensation. Consistent with conjecture, the analysis suggests that large and diversified corporate boards are the main determinants of CEO compensation. Furthermore, longer-tenured CEOs who also serve as board chairperson receive higher total compensation and bonuses than their counterparts do. Into the bargain are corporate performance proxied by return of assets (ROA) and firm attributes, i.e., firm size and institutional ownership, which have divergent but direct implications for CEO compensation.
| Original language | English |
|---|---|
| Article number | 11719 |
| Journal | Sustainability (Switzerland) |
| Volume | 14 |
| Issue number | 18 |
| DOIs | |
| Publication status | Published - Sept 2022 |
ASJC Scopus subject areas
- Computer Science (miscellaneous)
- Geography, Planning and Development
- Renewable Energy, Sustainability and the Environment
- Environmental Science (miscellaneous)
- Energy Engineering and Power Technology
- Hardware and Architecture
- Computer Networks and Communications
- Management, Monitoring, Policy and Law
Keywords
- board composition
- board gender diversity
- CEO compensation
- FTSE350
- UK
