Board Gender Diversity and Corporations’ Gender Pay Gap

Clarity AI performed an analysis to uncover whether organizations with greater female board representation also have a greater number of women employees and a smaller pay gap.

The research found that organizations with greater than 40% female board representation tend to have a higher share of women employees, but not a smaller pay gap.

Note: Sample size for Chart 1 (Gender Board Diversity and Employee Diversity) is 7,401 (6,332 organizations that make up <40% women on the board, 1,069 organizations that make up  >40% women on the board).  Sample size for Chart 2 (Gender Board Diversity and Gender Pay Gap) is 1,816 (1,448 organizations that make up <40% women on the board, 368 organizations that make up  >40% women on the board). 

Achieving gender equality in the workplace is crucial for creating a fair and inclusive society, promoting diversity and innovation, and driving economic growth. Investors are in a unique position to engage with companies, using the right metrics and data to influence change. Contact us to learn more about key indicators and metrics to measure companies’ impact on gender equality.