Connected male CEOs are significantly rewarded, female CEOs with connections receive a steep penalty in their earnings.
By taking advantage of a new hand-collected dataset on CEO educational networks between 1992 and 2013, this paper studies the association between gender and network connections. First, female CEOs are less likely to be “Influential” (that is, have extremely large networks). Second, while connected male CEOs are significantly rewarded, female CEOs are not. These results provide evidence supporting Paul and Sahni’s (2016) work that women receive lower returns from social capital than men.
“Let’s face it. It was never about golf. It’s about access to power, access to the place where deals are made and money passes hands.” - Martha Burk, ex-chairperson of The National Council of Women.