Susan Wojcicki said being hurtful "wasn’t our intention at all."
Staffers have been negotiating with the company for 14 months.
CEO Jim Bankoff, meanwhile, said he was disappointed in the walkout and said paying higher wages was "not realistic or smart."
The social media giant previously told Vox's Carlos Maza that "deeply offensive" opinions don't violate its anti-harassment policies.
Lockhart Steele was fired from Vox Media last year after an incident of forcible kissing.
Employees will instead receive two drink tickets, the company said in an internal email sent out Thursday afternoon.
The digital firm owns several sites, including Vox.com, SB Nation and Eater.
"By cancelling the panel, SXSW has assisted those who wish to silence women by threatening violence."
The investment gives Vox a valuation of more than $1 billion.
The Financial Times, whose parent company was recently sold to Japan's Nikkei, was one unfortunate letter off in a headline
The proposed deal gives the online publisher a valuation of $1.5 billion.
While standard Internet practice, the method still tends to ruffle feathers.
Though it would be quite unwise to call all content marketers insane, it's clear that we're actively living out Einstein's definition in the online world: Consistently producing content in the same way and expecting more influential viewers, fans and followers to sing our respective praises.
Vox Media announced some changes to its "magical" content platform, Chorus, at its upfront presentation in New York City