Board composition and board remuneration: the effect of gender diversity

Abstract

The aim of this paper is to analyze how the presence of female directors, both independent and proprietary affects the remuneration of the Board of Directors of IBEX 35 companies in 2014. The remuneration has been a key issue in the field of corporate governance. In this study we have analyzed two samples: one with the total number of companies in the IBEX 35 and other one excluding financial institutions. Our results suggest that the presence of proprietary directors positively affects the remuneration of the Board of Directors, and that this result can be obtained for small investors. In addition it is understood that financial institutions do not bias the results. The need to propose more stringent recommendations on gender equality, and increased transparency within remunerations of the Board of Directors is also evident.