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Gender Bias in How Individual Donors Respond to CEO Compensation Disclosures

Fri, May 13, 3:30 to 4:50pm, Hilton Orlando Lake Buena Vista, Lake Buena Vista (Orlando), Florida, TBA

Abstract

Nonprofits face difficult decisions in setting appropriate CEO compensation packages. In this study, I extend the literature on the effects of nonprofit governance on funding by examining donor response to CEO compensation. Utilizing datasets derived from the E-Filer database from 2010-2017, I clarify prior research on the response of public donors to high levels of CEO compensation by separately examining individual donors and private foundations. I find that individual donors reduce donations to organizations with higher levels of CEO compensation and exhibit a gender bias by responding more strongly to highly paid female CEOs than highly paid male CEOs. I do not find evidence of a similar response to CEO compensation or a gender bias in institutional giving.

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