Unequal in the Spotlight: Gender Differences in How Serving on Prominent Firms Affects Directors’ New Board Appointments

Abstract

Does gaining a foothold in the upper echelons of the corporate landscape carry different implications for women and men? We address this question by examining gender differences in how serving on the boards of prominent firms leads to new board appointments. While prominent affiliations are widely recognized as advantageous, research has yet to ask whether these benefits vary by gender. Using data on the population of directors in the FTSE-100 between 2010 and 2017, we find that women are, on average, more likely than men to obtain additional board appointments, consistent with prior literature showing that pressures to increase diversity stimulate demand for incumbent women relative to men. However, serving on more-prominent boards within the FTSE-100 increases men’s likelihood of obtaining new appointments but decreases it for women. Thus, women’s advantage diminishes and eventually reverses, becoming a disadvantage, as firm prominence increases. Our systematic evaluation of potential demand- and supply-side explanations for this pattern finds limited support for both. We propose, instead, that women’s experiences of greater scrutiny and of informal demands on more-prominent boards may shape their willingness to pursue additional appointments. We highlight the dual role of prominent affiliations as sources of both opportunity and constraint, with implications for individual careers and organizational diversity.