This study examines whether executive gender diversity is associated with gender pay inequality in UK firms. Although prior research has extensively examined board diversity, less is known about whether gender diversity within executive leadership teams is linked to differences in pay inequality across firms. Using a panel of FTSE 350 non-financial firms from 2017 to 2023 and mandatory UK gender pay gap disclosures, we estimate regression models to examine the relationship between the proportion of female executives and the gender pay gap. The findings show that greater executive gender diversity is significantly associated with lower gender pay inequality. In contrast, a higher proportion of women in the overall workforce is associated with wider pay gaps, consistent with occupational segregation and unequal access to higher-paid roles. Additional analyses indicate that the negative association between executive gender diversity and pay inequality is stronger among firms with higher levels of female executive representation and among firms with greater baseline inequality. These findings contribute to the literature by linking executive-level diversity to pay outcomes within firms and by extending understanding of how leadership composition is associated with organisational inequality. The study also offers practical implications for firms, regulators, and policymakers seeking to reduce gender pay disparities through leadership and governance reforms.
Eliwa et al. (Tue,) studied this question.