Gender and Professional Networks on Bank Boards

Using a newly compiled dataset of bank board membership over the 1999–2018 period, we find that within-board professional networks are extensive, but female board members are significantly less connected than male directors, both in number and length of connections. Professional networks play an important role in determining the appointment of bank board directors and positively impact compensation for female directors, especially connections to other women. These results suggest that there are differences in the breadth, depth, and value of networks of male and female board members; these differences could be a contributing channel through which women’s underrepresentation on boards prevails.