IDEAS home Printed from https://ideas.repec.org/a/cup/buetqu/v13y2003i04p415-432_00.html
   My bibliography  Save this article

Are Director Equity Policies Exclusionary?

Author

Listed:
  • Daily, Catherine M.
  • Dalton, Dan R.

Abstract

This paper examines two recent trends relative to boards of directors’ compensation, and their potential incompatibility. There has been some progress in increasing board diversity, specifically the inclusion of women and minorities on boards. The increasing trend requiring directors to hold/purchase equity as a requirement of board membership may seriously compromise further improvements in diversifying boards. Also, an increasing number of companies compensate directors partially or fully in stock grants and options. These compensation policies may be exclusionary, especially for women and minorities, impacting the quality of boardroom discussions and decisions. This study systematically examines whether corporations requiring director equity are exclusionary toward women and minority directors. Contrary to being exclusionary, companies with director stock requirements and annual stock awards have greater representation by women and minorities on their board. Moreover, larger companies are both more likely to have such policies and have higher proportions of women and minorities on the board.

Suggested Citation

  • Daily, Catherine M. & Dalton, Dan R., 2003. "Are Director Equity Policies Exclusionary?," Business Ethics Quarterly, Cambridge University Press, vol. 13(4), pages 415-432, October.
    • Handle: RePEc:cup:buetqu:v:13:y:2003:i:04:p:415-432_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1052150X00006680/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Jean Kabongo & Kiyoung Chang & Ying Li, 2013. "The Impact of Operational Diversity on Corporate Philanthropy: An Empirical Study of U.S. Companies," Journal of Business Ethics, Springer, vol. 116(1), pages 49-65, August.
    2. Seemantini Pathak & Codou Samba & Mengge Li, 2021. "Audit committee diversity and financial restatements," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(3), pages 899-931, September.
    3. Gro Mathisen & Torvald Ogaard & Einar Marnburg, 2013. "Women in the Boardroom: How Do Female Directors of Corporate Boards Perceive Boardroom Dynamics?," Journal of Business Ethics, Springer, vol. 116(1), pages 87-97, August.
    4. S. Certo & Catherine Dalton & Dan Dalton & Richard Lester, 2008. "Boards of Directors’ Self Interest: Expanding for Pay in Corporate Acquisitions?," Journal of Business Ethics, Springer, vol. 77(2), pages 219-230, January.
    5. Clara Gallego-Sosa & Yakira Fernández-Torres & Milagros Gutiérrez-Fernández, 2020. "Does Gender Diversity Affect the Environmental Performance of Banks?," Sustainability, MDPI, vol. 12(23), pages 1-15, December.

    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:cup:buetqu:v:13:y:2003:i:04:p:415-432_00. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/beq .

    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.