Women in Charge: Evidence from Hospitals

The paper examines the decision-making, compensation, and turnover of female CEOs in U.S. hospitals. Contrary to the literature on lower-ranked executives and directors in public firms, there is no evidence that gender differences in preferences for risk or altruism affect decision-making of hospital CEOs: corporate policies do not shift when women take (or leave) office, and male and female CEOs respond similarly to a major financial shock. However, female CEOs earn lower salaries, face flatter pay-for-performance incentives, and exhibit greater turnover after poor performance. Hospital boards behave as though they perceive female CEOs as less productive.