Women in the Boardroom

While women are becoming more equitably represented in the workforce, particularly in coveted management positions, the percentage of women in board seats lags behind. According to 2016 data by the Catalyst Research Center (CRC), women make up only 19.9% of board seats in S&P 500 companies. This statistic is even more shocking given that most boards have no women whatsoever. The slow rate of women representation on board seats is hindered by the nature of board positions themselves: long/no term limits and low turnover. However, given the increased number of women with baccalaureate/advanced degrees and extensive experience in C-suite and upper-level management experience, there is no other barrier to a company’s active pursuit of women and other minorities to fill their positions.Having women on the board has the potential to positively affect overall decisions and strategy. Members from diverse backgrounds earnestly challenge the status quo, protecting against “group think” and better facilitating critical reassessments and robust discussions on issues. Rather than board members having overlapping and redundant experiences, a board composed of a collection of diverse qualities serves as a rich repository for CEOs and senior management to utilize while navigating the complex, fast-paced and globalizing business environment.

Having women on the board has the potential to positively affect overall decisions and strategy. Members from diverse backgrounds earnestly challenge the status quo, protecting against “group think” and better facilitating critical reassessments and robust discussions on issues. Rather than board members having overlapping and redundant experiences, a board composed of a collection of diverse qualities serves as a rich repository for CEOs and senior management to utilize while navigating the complex, fast-paced and globalizing business environment.Not only does diversity encourage a more thoughtful decision-making process, but it sets an example and provides incentive to continue to diversify all levels of the company. Additionally, diversifying boards indicates to potential investors that the company is forward-thinking and dedicated to matching the changing times.In terms of concrete results, there have been a number of studies conducted on the positive effects of women on boards. For example, CRC found that Fortune 500 companies with more women directors had 53% higher ROE, 42% higher ROS and 66% higher invested capital than boards with

Not only does diversity encourage a more thoughtful decision-making process, but it sets an example and provides incentive to continue to diversify all levels of the company. Additionally, diversifying boards indicates to potential investors that the company is forward-thinking and dedicated to matching the changing times.In terms of concrete results, there have been a number of studies conducted on the positive effects of women on boards. For example, CRC found that Fortune 500 companies with more women directors had 53% higher ROE, 42% higher ROS and 66% higher invested capital than boards with

In terms of concrete results, there have been a number of studies conducted on the positive effects of women on boards. For example, CRC found that Fortune 500 companies with more women directors had 53% higher ROE, 42% higher ROS and 66% higher invested capital than boards with less women. Other studies have shown positive effects on risk management, performance and growth. Given that representation of women in the total workforce, as well as in management positions has grown the more equitably represent the population (roughly 50%), the fact that representation on boards hovers around 20% is problematic. These women and other minorities represent an underutilized pool of experience that can and should be used to bolster and modernize companies.

Given that representation of women in the total workforce, as well as in management positions has grown the more equitably represent the population (roughly 50%), the fact that representation on boards hovers around 20% is problematic. These women and other minorities represent an underutilized pool of experience that can and should be used to bolster and modernize companies.Executive-Advisory is seeing boards seeking women in over 40% of new searches.

Executive-Advisory is seeing boards seeking women in over 40% of new searches.