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The Association Between Gender-Diverse Compensation Committees and CEO Compensation

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  • Martin Bugeja

    (University of Technology, Sydney)

  • Zoltan Matolcsy

    (University of Technology, Sydney)

  • Helen Spiropoulos

    (University of Technology, Sydney)

Abstract

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.

Suggested Citation

  • Martin Bugeja & Zoltan Matolcsy & Helen Spiropoulos, 2016. "The Association Between Gender-Diverse Compensation Committees and CEO Compensation," Journal of Business Ethics, Springer, vol. 139(2), pages 375-390, December.
    • Handle: RePEc:kap:jbuset:v:139:y:2016:i:2:d:10.1007_s10551-015-2660-y
    DOI: 10.1007/s10551-015-2660-y
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