Does Board Gender Diversity Curb CEO Pay Ratio? New Research Provides Clarity.

Dong Chen, an associate professor of finance in the Merrick School of Business and his research co-author Yudan Zheng, associate professor of finance at Long Island University, say their recent study analyzing the causal impact of board gender diversity on CEO pay ratios, is the first of its kind.

Chen and Zheng’s findings were recently published on the Columbia Law School's Blog on Corporations and the Capital Markets in an article titled, "Gender-Diverse Boards May Reduce CEO Pay Ratio."

The study provides important clarity by investigating three specific areas: 

1. The causal effect of BGD on the CEO pay ratio.
2. The underlying motivations driving female directors' actions on this ratio (i.e., a preference for equity).
3. The specific conditions under which their impact is most significant.

This work moves beyond correlation to confirm that increasing the number of women on a board can indeed lead to more equitable pay structures within a corporation. 

About Dong Chen

Associate Professor of Finance

Research Interests:

• Corporate Finance/Governance
• Board of Directors
• Credit Risk
• Executive Compensation
• Risk Taking Incentives
• Environment, Social and Governance (ESG)
• Climate Change Policies

Dr. Chen's Faculty Profile