Verbal Femininity and CEOs Compensation
摘要
This study investigates how gender biases among board directors influence CEO compensation, focusing on the role of male CEOs’ verbal femininity. Given that verbal expression is another essential way to reveal feminine characters of CEOs, the femininity saliently cued in CEOs’ verbalizing habits can bring more distorted perception, which leads to the boards’ evaluation on their contributions. This is because verbal femininity, characterized by nurturing, empathetic, benevolent, and collaborative communication styles, is argued to conflict with traditional masculine stereotypes of leadership. Drawing on role congruity theory, we contend that CEOs who exhibit verbal femininity are undervalued in compensation decisions due to biases against traits perceived as incongruent with the prototype of effective leadership. In this study, we specify the feminine characteristics which induce decision errors by using a Large Language Model (LLM). Acknowledging that LLMs are subject to pre-existing social prejudices and gender biases, we utilize this attribute of the models to develop a way to capture gender biases (especially femininity). In this study, we employ an LLM-driven algorithm to measure the extent to which a certain CEO’s words in official settings show femininity. Using this measure, we examine how the CEO’s verbal femininity can affect the assessment of CEO quality in the boardroom, determining the level of CEO compensation. Our findings contribute to the broader discourse on implicit gender biases in determining CEO compensation.