On February 24, 2023, the International Center for Finance (ICF) held its Board of Advisors Meeting at Yale School of Management Evans Hall for the first time in person since 2019. Board members enjoyed lunch with SOM finance faculty and ICF staff at the Snyder Forum. Leigh Ann Clark, the Director of ICF, welcomed the attendees and introduced the agenda. The meeting started with a report from William Goetzmann, the Faculty Director of ICF, on the center's progress and Board Member Participation Report.
After a short break, Kelly Shue, Professor of Finance, gave a faculty talk titled "Potential" and the Gender Promotion Gap. The talk demonstrated how subjective assessments of employee potential contribute to gender gaps in promotion and pay. Shue used data from a large retail chain to show that women receive lower potential ratings despite higher job performance ratings. The potential ratings account for 30-50% of the gender promotion gap. The study found that women's lower potential ratings are not based on accurate forecasts of future performance, and even when women outperform male colleagues with the same potential rating, their subsequent potential ratings remain low.
The meeting then went on a break before the open discussion session. The meeting concluded with closing remarks.