Alma Cohen, Moshe Hazan & David Weiss, Politics and Gender in the Executive Suite (Harv. L. Sch. John M. Olin Ctr. Discussion Paper No. 1029, Mar. 25, 2020).
Abstract: We investigate whether CEOs' political preferences are associated with the prevalence and compensation of women among non-CEO top executives at U.S. public companies. We find that "Democratic" CEOs are associated with more women in the executive suite. To explore causality, we use an event study approach to show that replacing a Republican with a Democratic CEO increases female representation. Additionally, we discuss how the lack of an association between CEO political preferences and gender diversity in the boardroom influences our interpretation of these results. Finally, gender gaps in the level and performance-sensitivity of compensation diminish, or disappear, under Democratic CEOs.