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This study investigates the evolution of CEO-employee pay disparity following Initial Public Offerings (IPOs) and the moderating role of independent female directors. Using a Difference-in-Differences approach with matched private firms in Sweden, we find that IPOs significantly widen pay disparity, primarily due to increased CEO pay while employee salaries remain unchanged. Independent female directors play a critical role in mitigating this disparity by constraining CEO pay, whereas their absence amplifies the gap. Moreover, pay disparity does not improve firm performance, while boards with independent female directors are positively associated with firm sales and size. These findings underscore the importance of board independence in promoting equitable compensation structures, providing a reassuring solution to the governance challenges of IPO transitions, and enhancing organizational outcomes.

I såväl den politiska som juridiska debatten förekommer påståenden om revisorns betydelse för att stävja ekonomisk brottslighet och skatteundandragande. Dessa påståenden har genom åren kommit att bli självklara och ett återkommande mantra utan närmare förklaring. Vilken betydelse har egentligen revisorn för att få mindre aktiebolag som idag inte måste ha revisor att betala skatt?

We study the association between the gender of the Chief Executive Officer (CEO) and the probability that firms go public through an Initial Public Offering (IPO), using data for the full population of Swedish IPO firms from 2005-2017, and matched private firms. We find that firms that go public are less likely to have a female CEO. The results are robust when we test for a change of CEO: firms that switch from a male to a female CEO are less likely to go public, and when we consider the gender balance among the board of directors.