Companies With More Women Board Directors Experience Higher Financial Performance - Catalyst

by catalyst.org —

Report shows that three or more may be the charm

Fortune 500 companies with the highest representation of women board directors attained significantly higher financial performance, on average, than those with the lowest representation of women board directors, according to Catalyst’s most recent report, The Bottom Line: Corporate Performance and Women’s Representation on Boards. In addition, the report points out, on average, notably stronger-than-average performance at companies with three or more women board directors.

The report found higher financial performance for companies with higher representation of women board directors in three important measures:

• Return on Equity: On average, companies with the highest percentages of women board directors outperformed those with the least by 53 percent.

• Return on Sales: On average, companies with the highest percentages of women board directors outperformed those with the least by 42 percent.

• Return on Invested Capital: On average, companies with the highest percentages of women board directors outperformed those with the least by 66 percent.

The correlation between gender diversity on boards and corporate performance can also be found across most industries—from consumer discretionary to information technology. read more...