The gender pay gap in the board of directors: a group-specific analysis

Purpose This study aims to investigate gender pay gaps (GPG) among boards of directors in Spanish companies listed on the Madrid Stock Exchange between 2013 and 2021. This study also sheds light on nuanced gender pay discrepancies within specific directorial roles and advocates for targeted interventions to achieve gender parity in corporate leadership positions. Design/methodology/approach This study examines compensation disparities among executive, proprietary and independent directors using panel data analysis and propensity score matching. Findings The results reveal significant GPGs predominantly among executive directors, where women receive considerably lower fixed, variable and total compensation than their male counterparts. Quantifying the GPG, male executive directors receive over three times the compensation of their female counterparts, highlighting the depth of the disparity within this cohort. However, no substantial GPG is observed among proprietary or independent directors. Social implications This study highlights the importance of policies promoting gender diversity and equity on corporate boards and emphasizes the need for gender-aware compensation practices. Finally, it may be useful for companies, policymakers, female directors and investors by shedding light on gender-based inequities within corporate leadership. Originality/value This research underscores the significance of analysing GPGs within homogenous groups of directors (executive, proprietary and independent) and compensations (total compensation disaggregated into fixed and variable compensations), in contrast with prior studies that have adopted a broader approach.