Abstract
I explored the factors relevant to the perpetuation of gender biases in performance evaluation. Previous researchers have suggested that merit based compensation systems may have the unintended effects of increasing biases against women and minorities (known as the “paradox of meritocracy”). I hypothesized that higher levels of gender representation at the executive board level would have an effect on the meritocracy paradox, such that more representation of women at the executive board level of an organization would lead to lower levels of gender bias in merit conditions. Participants (N = 255) completed a series of managerial tasks including a performance evaluation. Results demonstrated that while there was no meritocracy effect as a result of compensation system, there was evidence of gender bias in bonus allocation, promotion recommendations, and evaluations of hiring decisions. This study indicates that additional research is needed to understand the effects of merit based compensation systems.