IDEAS home Printed from https://ideas.repec.org/a/bla/stratm/v41y2020i4p708-737.html
   My bibliography  Save this article

Gender differences in speed of advancement: An empirical examination of top executives in the Fortune 100 firms

Author

Listed:
  • Rocio Bonet
  • Peter Cappelli
  • Monika Hamori

Abstract

Research summary We examine the advancement of women in executive roles in the ranks of the 10 highest executive positions in the Fortune 100 companies in 2001 and 2011. We find that women executives secured top executive positions faster than men, controlling for relevant individual attributes, and that the advantage of women with respect to men grew with the number of years they spent in the organization. The female advantage disappeared once companies had more than one high‐ranking female executive. We make use of several tests to assess possible unobserved differences between men and women executives, including the case–control technique from epidemiology. Our results are consistent with institutional pressures accelerating women's advancement to top executive positions, but they also reveal the limited effectiveness of such pressures. Managerial summary Employers interested in increasing the diversity of their executive ranks should pay attention not only to who is in those jobs but also how long it took them to get there. In our study, women in top jobs got there faster not just because they were better but because they moved through previous positions faster and skipped steps in job ladders. This suggests how diversity at the top can be enhanced without having to wait for more diverse cohorts in lower‐level jobs to slowly advance. The fact that faster advancement slowed once there were a few women in top jobs suggests that support for advancement was indeed a company choice, unfortunately one driven by public appearances.

Suggested Citation

  • Rocio Bonet & Peter Cappelli & Monika Hamori, 2020. "Gender differences in speed of advancement: An empirical examination of top executives in the Fortune 100 firms," Strategic Management Journal, Wiley Blackwell, vol. 41(4), pages 708-737, April.
  • Handle: RePEc:bla:stratm:v:41:y:2020:i:4:p:708-737
    DOI: 10.1002/smj.3125
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/smj.3125
    Download Restriction: no

    File URL: https://libkey.io/10.1002/smj.3125?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sarah E. Wolfolds & Jordan Siegel, 2019. "Misaccounting for endogeneity: The peril of relying on the Heckman two‐step method without a valid instrument," Strategic Management Journal, Wiley Blackwell, vol. 40(3), pages 432-462, March.
    2. Peter Cappelli & Monika Hamori, 2014. "Understanding Executive Job Search," Organization Science, INFORMS, vol. 25(5), pages 1511-1529, October.
    3. Jones, David R & Makepeace, Gerald H, 1996. "Equal Worth, Equal Opportunities: Pay and Promotion in an Internal Labour Market," Economic Journal, Royal Economic Society, vol. 106(435), pages 401-409, March.
    4. George-Levi Gayle & Limor Golan & Robert A. Miller, 2012. "Gender Differences in Executive Compensation and Job Mobility," Journal of Labor Economics, University of Chicago Press, vol. 30(4), pages 829-872.
    5. Bell, Linda A., 2005. "Women-Led Firms and the Gender Gap in Top Executive Jobs," IZA Discussion Papers 1689, Institute of Labor Economics (IZA).
    6. Nina Smith & Valdemar Smith & Mette Verner, 2013. "Why are So Few Females Promoted into CEO and Vice President Positions? Danish Empirical Evidence, 1997–2007," ILR Review, Cornell University, ILR School, vol. 66(2), pages 380-408, April.
    7. Antonio Falato & Dan Li & Todd Milbourn, 2015. "Which Skills Matter in the Market for CEOs? Evidence from Pay for CEO Credentials," Management Science, INFORMS, vol. 61(12), pages 2845-2869, December.
    8. Custódio, Cláudia & Ferreira, Miguel A. & Matos, Pedro, 2013. "Generalists versus specialists: Lifetime work experience and chief executive officer pay," Journal of Financial Economics, Elsevier, vol. 108(2), pages 471-492.
    9. Marianne Bertrand & Kevin F. Hallock, 2001. "The Gender Gap in Top Corporate Jobs," ILR Review, Cornell University, ILR School, vol. 55(1), pages 3-21, October.
    10. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    11. Leung, Ming D., 2016. "The dilemma of mobility: The differential effects of women and men’s erratic career paths," Institute for Research on Labor and Employment, Working Paper Series qt59177468, Institute of Industrial Relations, UC Berkeley.
    12. Antoinette Schoar & Luo Zuo, 2011. "Shaped by Booms and Busts: How the Economy Impacts CEO Careers and Management Styles," NBER Working Papers 17590, National Bureau of Economic Research, Inc.
    13. Farrell, Kathleen A. & Hersch, Philip L., 2005. "Additions to corporate boards: the effect of gender," Journal of Corporate Finance, Elsevier, vol. 11(1-2), pages 85-106, March.
    14. Edward J. Zajac & James D. Westphal, 1994. "The Costs and Benefits of Managerial Incentives and Monitoring in Large U.S. Corporations: When is More not Better?," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 121-142, December.
    15. Bartlett, Robin L & Miller, Timothy I, 1985. "Executive Compensation: Female Executives and Networking," American Economic Review, American Economic Association, vol. 75(2), pages 266-270, May.
    16. Aaron D. Hill & Arun D. Upadhyay & Rafik I. Beekun, 2015. "Do female and ethnically diverse executives endure inequity in the CEO position or do they benefit from their minority status? An empirical examination," Strategic Management Journal, Wiley Blackwell, vol. 36(8), pages 1115-1134, August.
    17. Aleksandra Gregorič & Lars Oxelheim & Trond Randøy & Steen Thomsen, 2017. "Resistance to Change in the Corporate Elite: Female Directors’ Appointments onto Nordic Boards," Journal of Business Ethics, Springer, vol. 141(2), pages 267-287, March.
    18. Peter Cappelli & Monika Hamori, 2004. "The Path to the Top: Changes in the Attributes and Careers of Corporate Executives, 1980-2001," NBER Working Papers 10507, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schoonjans, Eline & Hottenrott, Hanna & Buchwald, Achim, 2023. "Welcome on board? Appointment dynamics of women as directors," ZEW Discussion Papers 23-005, ZEW - Leibniz Centre for European Economic Research.
    2. John Kenneth Mawdsley & Lionel Paolella & Rodolphe Durand, 2023. "A rivalry‐based theory of gender diversity," Strategic Management Journal, Wiley Blackwell, vol. 44(5), pages 1254-1291, May.
    3. Eline Schoonjans & Hanna Hottenrott & Achim Buchwald, 2024. "Welcome on Board? Appointment Dynamics of Women as Directors," Journal of Business Ethics, Springer, vol. 192(3), pages 561-589, July.
    4. Giovanna Campopiano & Patricia Gabaldón & Daniela Gimenez-Jimenez, 2023. "Women Directors and Corporate Social Performance: An Integrative Review of the Literature and a Future Research Agenda," Journal of Business Ethics, Springer, vol. 182(3), pages 717-746, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Morikawa, Masayuki, 2016. "What types of companies have female directors? Evidence from Japan," Japan and the World Economy, Elsevier, vol. 37, pages 1-7.
    2. Geiler, Philipp & Renneboog, Luc, 2015. "Are female top managers really paid less?," Journal of Corporate Finance, Elsevier, vol. 35(C), pages 345-369.
    3. Lalanne, Marie & Seabright, Paul, 2016. "The old boy network: The impact of professional networks on remuneration in top executive jobs," SAFE Working Paper Series 123, Leibniz Institute for Financial Research SAFE.
    4. Guo, Xiaohu & Gupta, Vishal K. & Jackson, William E. & Mortal, Sandra C., 2021. "Is there a racial gap in CEO compensation?," Journal of Corporate Finance, Elsevier, vol. 69(C).
    5. Paul M. Guest, 2017. "Executive Compensation and Ethnic Minority Status," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(3), pages 427-458, July.
    6. Field, Laura Casares & Souther, Matthew E. & Yore, Adam S., 2020. "At the table but can not break through the glass ceiling:Board leadership positions elude diverse directors," Journal of Financial Economics, Elsevier, vol. 137(3), pages 787-814.
    7. Isabel Fernandez-Mateo & Roberto M. Fernandez, 2016. "Bending the Pipeline? Executive Search and Gender Inequality in Hiring for Top Management Jobs," Management Science, INFORMS, vol. 62(12), pages 3636-3655, December.
    8. Lam, Kevin C.K. & McGuinness, Paul B. & Vieito, João Paulo, 2013. "CEO gender, executive compensation and firm performance in Chinese‐listed enterprises," Pacific-Basin Finance Journal, Elsevier, vol. 21(1), pages 1136-1159.
    9. Francis, Bill B. & Hasan, Iftekhar & Hovakimian, Gayane & Sharma, Zenu, 2023. "Gender pay gap in American CFOs: Theory and evidence," Journal of Corporate Finance, Elsevier, vol. 80(C).
    10. Luca Flabbi & Mario Macis & Andrea Moro & Fabiano Schivardi, 2019. "Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance," The Economic Journal, Royal Economic Society, vol. 129(622), pages 2390-2423.
    11. Rama K. Malladi & Joshua D. Mean, 2021. "Is it a gender representation issue or a gender pay gap issue? A study of the replaced executives in the USA," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 56(2), pages 67-80, April.
    12. Masayuki Morikawa, 2014. "What Types of Companies Have Female and Foreign Directors?," AJRC Working Papers 1404, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    13. Keller, Wolfgang & Molina, Teresa & Olney, William W., 2023. "The gender gap among top business executives," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 270-286.
    14. Bugeja, Martin & Matolcsy, Zoltan P. & Spiropoulos, Helen, 2012. "Is there a gender gap in CEO compensation?," Journal of Corporate Finance, Elsevier, vol. 18(4), pages 849-859.
    15. Alma Cohen & Moshe Hazan & David Weiss, 2021. "Politics and Gender in the Executive Suite," NBER Working Papers 28893, National Bureau of Economic Research, Inc.
    16. Astrid Kunze & Amalia R. Miller, 2017. "Women Helping Women? Evidence from Private Sector Data on Workplace Hierarchies," The Review of Economics and Statistics, MIT Press, vol. 99(5), pages 769-775, December.
    17. Mohan, Nancy, 2014. "A review of the gender effect on pay, corporate performance and entry into top management," International Review of Economics & Finance, Elsevier, vol. 34(C), pages 41-51.
    18. Liu, Haiming & Liang, Quanxi & Ling, Leng, 2022. "Underrepresentation of female CEOs in China: The role of culture, market forces, and foreign experience of directors," Research in International Business and Finance, Elsevier, vol. 63(C).
    19. MORIKAWA Masayuki, 2014. "What Types of Company Have Female and Foreign Directors?," Discussion papers 14032, Research Institute of Economy, Trade and Industry (RIETI).
    20. Matti Keloharju & Samuli Knüpfer & Joacim Tåg, 2022. "What prevents women from reaching the top?," Financial Management, Financial Management Association International, vol. 51(3), pages 711-738, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:stratm:v:41:y:2020:i:4:p:708-737. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0143-2095 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.