Does board composition affect the gender pay gap?

By matching a unique firm-level gender pay gap (GPG) data with the corporate board- and firm-characteristics, we find that firms with the presence of foreign directors on board reduce the GPG of the firms in Britain. This result is more pronounced with the profitable firms, and with those that have less than 5000 employees. The findings suggest that policymakers’ emphasis on achieving diversity on the corporate board may also help improve equality in pay.