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Do female and ethnically diverse executives endure inequity in the CEO position or do they benefit from their minority status? An empirical examination

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  • Aaron D. Hill
  • Arun D. Upadhyay
  • Rafik I. Beekun

Abstract

type="main" xml:id="smj2274-abs-0001"> We present competing hypotheses regarding whether gender and ethnic minority CEOs endure inequities resulting in lower compensation and higher likelihood of job exit or benefit from their valuable, rare, and inimitable minority status, resulting in higher compensation and lower likelihood of job exit. Using a longitudinal sample, we find support for the resource-based hypothesis regarding compensation that suggests CEOs benefit from their minority status to receive higher compensation than white male CEOs receive. However, we also find mixed support for our hypotheses relating CEO minority status to the likelihood of exit. We find that the effects of minority status on likelihood of exit are significantly different for female and ethnic minority CEOs such that the former relationship is negative while the latter is positive. Copyright © 2014 John Wiley & Sons, Ltd.

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  • Aaron D. Hill & Arun D. Upadhyay & Rafik I. Beekun, 2015. "Do female and ethnically diverse executives endure inequity in the CEO position or do they benefit from their minority status? An empirical examination," Strategic Management Journal, Wiley Blackwell, vol. 36(8), pages 1115-1134, August.
    • Handle: RePEc:bla:stratm:v:36:y:2015:i:8:p:1115-1134
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    10. Rama K. Malladi & Joshua D. Mean, 2021. "Is it a gender representation issue or a gender pay gap issue? A study of the replaced executives in the USA," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 56(2), pages 67-80, April.
    11. Canil, Jean & Karpavičius, Sigitas & Yu, Chia-Feng, 2019. "Are shareholders gender neutral? Evidence from say on pay," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 169-186.
    12. , Aisdl, 2021. "The Impact of CEOs’ Gender on Organisational Efficiency in the Public Sector: Evidence from the English NHS," OSF Preprints mhcxv, Center for Open Science.
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    14. Guo, Xiaohu & Gupta, Vishal K. & Jackson, William E. & Mortal, Sandra C., 2021. "Is there a racial gap in CEO compensation?," Journal of Corporate Finance, Elsevier, vol. 69(C).
    15. Gema Gutierrez-Romero & Antonio Blanco-Oliver & Mª Teresa Montero-Romero & Mariano Carbonero-Ruz, 2021. "The Impact of CEOs’ Gender on Organisational Efficiency in the Public Sector: Evidence from the English NHS," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    16. Kristina Reineke & Holger Steinmetz & Rodrigo Isidor & Rüdiger Kabst, 2020. "Women on Top Management Teams and Firm Performance in German Medium-Sized Enterprises: The Moderating Role of Recruiting Source," Working Papers Dissertations 60, Paderborn University, Faculty of Business Administration and Economics.
    17. Nguyen, Thi Hong Hanh & Ntim, Collins G. & Malagila, John K., 2020. "Women on corporate boards and corporate financial and non-financial performance: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 71(C).
    18. Kiefner, Valentin & Mohr, Alexander & Schumacher, Christian, 2022. "Female executives and multinationals’ support of the UN's sustainable development goals," Journal of World Business, Elsevier, vol. 57(3).
    19. Paul M. Guest, 2017. "Executive Compensation and Ethnic Minority Status," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(3), pages 427-458, July.
    20. Joyce C. Wang & Lívia Markóczy & Sunny Li Sun & Mike W. Peng, 2019. "She’-E-O Compensation Gap: A Role Congruity View," Journal of Business Ethics, Springer, vol. 159(3), pages 745-760, October.
    21. Dane P. Blevins & Steve Sauerwald & Jenny M. Hoobler & Christopher J. Robertson, 2019. "Gender Differences in Pay Levels: An Examination of the Compensation of University Presidents," Organization Science, INFORMS, vol. 30(3), pages 600-616, May.
    22. Ann-Christine Schulz & Miriam Flickinger, 2020. "Does CEO (over)compensation influence corporate reputation?," Review of Managerial Science, Springer, vol. 14(4), pages 903-927, August.

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