Board Gender Diversity and Nonprofit CEO Compensation: Implications for Gender Pay Gap

This study examines how gender diversity on nonprofit boards relates to chief executive officer (CEO) compensation using data of 1,835 501(c)(3) organizations with the GuideStar Platinum Seal of Transparency. The analysis reveals a positive association between women’s representation on a governing b...

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Bibliographic Details
Published in:Nonprofit and voluntary sector quarterly 2024-02, Vol.53 (1), p.257-273
Main Author: Lee, Young-joo
Format: Article
Language:English
Subjects:
Compensation
Gender
Gender pay gap
Multiculturalism & pluralism
Transparency
Women
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Summary:This study examines how gender diversity on nonprofit boards relates to chief executive officer (CEO) compensation using data of 1,835 501(c)(3) organizations with the GuideStar Platinum Seal of Transparency. The analysis reveals a positive association between women’s representation on a governing board and female CEO compensation until women’s proportion reaches 82%. By contrast, there is a negative relationship between women’s representation on boards and male CEO compensation. Overall, the findings suggest that board gender diversity has distinctive implications for CEO compensation depending on CEO gender and that having more women on governing boards contributes to closing the gender pay gap for nonprofit executives. These findings can be applied to other dimensions of diversity, including racial and ethnic diversity.
ISSN:0899-7640
1552-7395
0899-7640
DOI:10.1177/08997640231158596