IRmagBoard diversity and, by extension, board composition, is one of the top corporate governance topics to be discussed each proxy season. While the most recent Spencer Stuart Board Index indicates that the rate of change of gender composition has sped up in recent years, the latest findings from IR Magazine’s Board Diversity research report suggest diversity is a topic still on the fringes of some investors’ minds.

The 2019 Census of Women Directors and Executive Officers of Massachusetts Public Companies TheBostonClub

“In 2003, 50 of the largest 100 public companies in Massachusetts had no women on their boards of directors, and women held only 74 of the 822 total board seats. 56 of the 100 companies had no women executive officers. In this 2019 Census, women comprise a

Washington, DC, November 19, 2019

Today, the U.S. House of Representatives passed H.R. 5084, the Improving Corporate Governance Through Diversity Act of 2019, a bill that requires public companies to annually disclose the voluntarily, self-identified gender, race, ethnicity, and veteran status of their board of directors, nominees, and senior executive officers.

kpmgAs boards seek to improve their effectiveness and consider how best to carry out their oversight role amid rapid change and shifting expectations, diversity—of skills, background, and experience—must be top of mind. Institutional investors and other stakeholders, including employees and customers, continue to focus

...we find that banks with more gender diversity on their board perform better once the composition of these boards reaches a critical level of gender diversity, corresponding to a board female share of around 13-17 percent.

 

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