March 2013 CR Magazine | R. Paul Herman and Zhaoqi Fu
Honor Thy Mother
Boards with more women typically enrich the bottom line and lower risk.
If a Credit Suisse report showed that your company’s return on equity (ROE) could be one-third higher than your competitors by just changing one factor, would you consider making that change?
Many global companies have ignored this factor, even though it comprises one half the population, one half the talent pool, and one half or more of most customer bases. The factor is the number of women on the board of directors. It is a meaningful indicator for potential increases in return on equity: Of 2,560 companies reviewed globally between 2005 and 2011 by Credit Suisse, those with no women on the board averaged 12 percent ROE, while those with one or more women on the board averaged 16 percent ROE—and with less volatility. How many women are on your board of directors? Does the percentage match your customer base and talent pool?
Read the full article HERE.