Journal of Business Ethics

, Volume 129, Issue 2, pp 265–280 | Cite as

Women on the Board and Managers’ Pay: Evidence from Spain

  • Maria Encarnación Lucas-Pérez
  • Antonio Mínguez-Vera
  • Juan Samuel Baixauli-Soler
  • Juan Francisco Martín-Ugedo
  • Gregorio Sánchez-Marín
Article

Abstract

The current literature shows great interest in the issue of gender diversity on boards of directors. Some studies have hypothesized a direct relationship between diversity and the value of the firm, but not many examine the intermediate mechanisms that may exert an influence on such relationships. We employ two stages of GMM estimation methodology to exhibit evidences of the relationship between gender diversity and compensation of top managers in the Spanish context. Results show that gender diversity positively affects the effectiveness of boards—in terms of composition, structure, size and functioning—influencing a proper design of top managers compensation linked to company performance. Evidences suggest that legislative actions aimed at increasing the presence of women on boards of directors are justified not only for ethical reasons, but also for reasons of economic efficiency.

Keywords

Board of directors Gender diversity Governance effectiveness Top managers’ compensation Board characteristics 

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Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  • Maria Encarnación Lucas-Pérez
    • 1
  • Antonio Mínguez-Vera
    • 1
  • Juan Samuel Baixauli-Soler
    • 1
  • Juan Francisco Martín-Ugedo
    • 1
  • Gregorio Sánchez-Marín
    • 1
  1. 1.Department of Management and Finance, Faculty of Economics and BusinessUniversity of MurciaMurciaSpain

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