Summer Reading

Three reports released this summer add to the growing body of research indicating that women directors are good for business. OK, not your typical summer reads, but you may want to add them to your reading list.
 
The Credit Suisse Research Institute's report released this month reviewed 2360 global companies and found that companies with women directors out performed companies without women directors in return on equity, average growth, and price book value multiples. Bottom line? Companies with at least one-woman director had better share price performance than those companies without women for the last six years. Supporting the 2020 Index findings, the report said that larger companies have a higher proportion of women directors.   To read the report, click here.
 
Last month GMI Ratings released Variation in Female Board Representation within the United States. The study suggests that while regional variations exist with respect to boardroom diversity, industry sector plays a far bigger role in determining whether women will have seats at the table.  GMI's findings suggest that the best way to address regional inequities is through industry-based initiatives. Their 2012 Women on Boards Survey reported that the US ranks 11th out of 45 countries in its percentage of female corporate board members. Of Russell 3000 directors, only 11.6% were women and 36% of Russell 3000 boards were all male. To read about the study, click here.
 
Also last month, The Committee for Economic Development released it's report, Fulfilling the Promise: How More Women on Corporate Boards Would Make America and American Companies More Competitive. The report's authors call the situation in the US urgent, pointing to the success that other countries have made in advancing women to leadership positions and board appointments. CED's key recommendation: Business leaders must make it a priority to develop the talents and advance the careers of female staff who have been identified as potential leaders, and should be transparent in setting targets, measuring results and holding themselves accountable. To read the CED report, click here.
 
Three reputable studies support the premise that women on the board is just good business. What else is needed to be convinced that it's time to change?