Tag Archive for: board quotas

iStock_000016909333XSmallBy Melissa J. Anderson (New York City)

Recently released research by Thomson Reuters shows that the percentage of women on boards is rising incrementally around the world. Based on the firm’s database of 4,100 firms, the majority of companies globally have at least one woman on their board.

In 2012 (the last year for which there was data), 59 percent of companies employed a woman board director. But it’s not all good news – that percentage has only risen by three percentage points since 2008, and it didn’t increase at all between 2011 and 2012.

The report [PDF], entitled “Mining the Metrics of Board Diversity,” shows that companies with women on their boards tend to outperform those with no women in terms. They also track better in relation to their index benchmark. Companies with no women have more tracking errors, the report shows, which means those firms may be more volatile.

By now, it’s old news that companies with women directors tend to do better than those without. Andre Chanavat, Product Manager, Environmental, Social & Governance (ESG) at Thomson Reuters, and co-author of the report with Katharine Ramsden, Global Head, Thought Leadership at Thomson Reuters, stated, “This study suggests that the performance of companies with mixed boards matched or even slightly outperformed companies with boards comprised solely of men, further reinforcing the idea that gender equality in the workplace makes good investment and business sense.”

But, as the report shows, while the majority of companies in the study did have women board directors, very few companies had more than one token women. Approaching a critical mass of three or more women on these boards is the result that many companies will still have to keep working toward.

Chanavat said, “Over the past five years significant measures have been put into place to help increase equal opportunity and diversity and while there has been a gradual increase in the percentage of companies that have women on boards, there is still a long way to go.”

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