Women on the board: an analysis of Spanish listed firms

Background: During decades there has been a fight for an incorporation of women into the labor market, which promotes gender equality. However, the greater presence of women in the labor market does not indicate equality since the existence of the well-known "glass ceiling" and a gender wage gap is evident. The article provides evidence of these two facts in corporate boards of Spanish listed companies. Methodology: We estimate a multiple regression model with observations by director, firm, and year, controlling fixed temporary effects of firm and industry. We specifically consider the presence of gender diversity in each category of director (executive, independent and affiliated) in order to avoid bias. We complete the study with a robustness analysis. Results: The results confirm the paucity of females in upper echelons of executive directors, and that female executives receive less pay than their male counterparts for equal work. Fortunately, this gender wage gap is not perceived in the other categories of directors analyzed, that is, independent and affiliated. Likewise, although the representation of independent and affiliated women on the board has risen in the last years, women are still largely under-represented in corporate boards. Conclusions: Women who break the "glass ceiling" and reach the executive positions do receive for the same work less compensation than men.