Amparo Nagore and Constantino José García Martín
In the context of sustainable development goal 5 of the United Nations 2030 Agenda: “Achieve gender equality and women’s empowerment”, where gender equality is not only a matter…
Abstract
Purpose
In the context of sustainable development goal 5 of the United Nations 2030 Agenda: “Achieve gender equality and women’s empowerment”, where gender equality is not only a matter of justice but also essential to achieve sustainable development, this paper aims to examine the gender pay gap in executive director compensation and the influence of female board representation and participation in nomination and remuneration committee (NRC) on this gap in Spanish listed firms over the period 2012–2022.
Design/methodology/approach
The analysis is conducted using a data set created by the authors, which includes executive director compensation data for 164 unique firms. This data set comprises 128 distinct observations for a given firm and year for women, and 2,333 observations for men. The authors estimate ordinary least squares models, clustering standard errors by executive. The authors use Oaxaca-Blinder decomposition to decompose gender differences in compensation into differences in the characteristics of men and women and differences in the return on the same characteristics.
Findings
The authors find evidence of pay penalty for female executive directors compared to male counterparts. After controlling for firm, board and executive characteristics, the authors find that women earn 27% less than comparable men. The penalty is lower in companies with a higher share of women on the compensation committee, suggesting that women’s participation plays a role in setting a more equal remuneration policy. The gender gap in executive compensation narrows over time due to a substantial reduction of the differences between men and women in both characteristics and the return on these characteristics.
Originality/value
This study is one of the few analysing the gender gap in executive director compensation and its evolution in Spain. It specifically explores how gender diversity on both the board and the NRC impacts this gap. The analysis is focused on the most recent period characterized by important efforts to promote gender diversity.
Details
Keywords
Amparo Nagore García and Arthur van Soest
Using administrative data from the Spanish Social Security Administration, the purpose of this paper is to analyse the nature and stability of job matches starting during the…
Abstract
Purpose
Using administrative data from the Spanish Social Security Administration, the purpose of this paper is to analyse the nature and stability of job matches starting during the economic boom in 2005 and during the recession in 2009.
Design/methodology/approach
The authors compare the individual, job, and firm characteristics in the two samples and estimate a competing risk model distinguishing job-to-job, job-to-unemployment, and other transitions.
Findings
The authors find that job-to-job transitions are pro-cyclical, while unemployment transitions are counter-cyclical. Individuals most affected by the economic crisis tend to be young males, living in regions with high unemployment rates, with low qualifications and working in manual occupations (particularly construction), and (especially Spanish speaking) immigrants.
Originality/value
The positive relation between job stability and firm size is stronger during the recession than during the boom.
Details
Keywords
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
The number of female executive directors can be restricted due to conventional prejudices and stereotyping. This typically leads to lower compensation compared to male counterparts, a situation that can be further affected by the tendency of women to work in smaller firms where remuneration is lower. Differences in gender characteristics and associated behaviors might also be significant, although these can erode over time. Scope to narrow the pay divide increases when women are appointed to the nomination and remuneration committee (NRC) and are given decision-making responsibilities.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.