DP14513 Politics and Gender in the Executive Suite

Author(s): Alma Cohen, Moshe Hazan, David Weiss
Publication Date: March 2020
Keyword(s): CEO Politics, Executive Suite, Gender diversity
JEL(s): G30, J16, J30, J33, J71, K00, M12, M14, M51, M52
Programme Areas: Labour Economics, Public Economics, Financial Economics, Macroeconomics and Growth
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=14513

We investigate whether CEOs' political preferences are associated with the prevalence and compensation of women among non-CEO top executives at U.S. public companies. We find that "Democratic" CEOs are associated with more women in the executive suite. To explore causality, we use an event study approach to show that replacing a Republican with a Democratic CEO increases female representation. Additionally, we discuss how the lack of an association between CEO political preferences and gender diversity in the boardroom influences our interpretation of these results. Finally, gender gaps in the level and performance-sensitivity of compensation diminish, or disappear, under Democratic CEOs.