Compensation Committee Gender Diversity and CEO Pay-Performance Link: Evidence from Australia, China, and Pakistan

Pakistan Journal of Commerce and Social Sciences, 2020, Vol. 14 (4), 1065-1087

23 Pages Posted: 10 Mar 2021

See all articles by Umaal Khan

Umaal Khan

affiliation not provided to SSRN

Khalid Waleed

The Islamia University of Bahawalpur

Muhammad Nouman

University of Agriculture, Peshawar

Sobia Khurram

University of the Punjab

Date Written: December 31, 2020

Abstract

In this study, we examine the crucial question whether the presence of female directors in the compensation committee (CC) improves the committee objectivity (i.e., paying executives for performance) in context of three countries namely Australia, China, and Pakistan. Using the data of public listed companies of these countries we find mixed results. Our results suggest that firms with gender-diverse CC strengthen the CEO pay-performance link only in Chinese listed firms. Our findings remain consistent even after controlling for possible issue of endogeneity. Overall, this paper highlights the diversity practices of China, Australia and Pakistan and provides empirical evidence to corporate world and regulatory bodies.

Keywords: gender diversity, compensation committee, female executives, CEO pay, pay-performance link

JEL Classification: M12, M14

Suggested Citation

Khan, Umaal and Waleed, Khalid and Nouman, Muhammad and Khurram, Sobia, Compensation Committee Gender Diversity and CEO Pay-Performance Link: Evidence from Australia, China, and Pakistan (December 31, 2020). Pakistan Journal of Commerce and Social Sciences, 2020, Vol. 14 (4), 1065-1087, Available at SSRN: https://ssrn.com/abstract=3767132

Umaal Khan (Contact Author)

affiliation not provided to SSRN

Khalid Waleed

The Islamia University of Bahawalpur ( email )

Bahawalpur, Punjab 6100
Pakistan

Muhammad Nouman

University of Agriculture, Peshawar ( email )

Peshawar
Peshawar, Khyber Pakhtun Khwa 25000
Pakistan

Sobia Khurram

University of the Punjab ( email )

Institute of Administrative Sciences
University of the Punjab
Lahore, Punjab 54590
Pakistan

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