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INTRODUCTION The prevalence of women executives in firms’ top management (hereafter, ‘women’s executive representation’) has increased in recent decades (Grant Thornton, 2022; McKinsey and Company, 2023).
Boards need a greater awareness of how compensation affects decision-making. advertisement The relationship between equity incentives for C-level executives and company performance has received enormous attention due to the cost to shareholders of the compensation awarded to top executives. An often neglected — but potentially more important — question is whether equity incentives influence executives’ risk-taking in ways that are detrimental to the company.
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