MU study finds women, minorities paid less on boards of directors
COLUMBIA - Women and minorities serving on boards of directors are paid less and are less likely to serve in leadership roles, a new University of Missouri, University of Delaware study found.
This is despite the fact researchers found women and minorities, on average, are more qualified when comparing education, experience, and expertise. Only seven percent of minorities and 12 percent of women serve in leadership positions on boards of directors, which is lower than their prevalence in the population.
Adam Yore, co-author of the study and assistant professor of finance at the University of Delaware, said this trend can keep companies from having a variety of perspectives.
"The pay gap is not huge, so we think this might be some type of subconscious effect,” Yore said, "Yet, it is something that could impact a board because they could be missing a significant perspective by not having a minority or female on the board serving in a leadership role."
Yore added the pay gap gets bigger as women and minorities spend more time at a company, which he said is concerning, because companies are always trying to retain the most talented people.
Researchers suggest to avoid these problems in the future, firms should review how they appoint board members to certain committees and leadership roles to make sure they have a balanced perspective in their board meetings.