Director Diversity, Turnover, and Promotion

We test whether a director's diversity relative to the rest of the board explains two important labor market outcomes, retention and promotion. We find that the results are asymmetric across diversity dimensions and outcomes. Retention is more likely but promotion is less likely for gender-diverse (women) directors. Both retention and promotion are less likely for age- and ethnicity-diverse directors. Thus, identity-diverse directors fare better only on the identity dimensions and labor market outcomes on which boards face external pressure. In contrast, skill-diverse directors are more likely to be both retained and promoted to leadership positions