More Women on Boards Means Higher Stock Performance

Could more women in the corporate board room mean an increase in stock performance? According to a recent study conducted by the Credit Suisse Research Institute, and reported by Bloomberg News, this appears to be the case.  Over a six year time-period, the institute studied 2,360 companies, their stock performance, and the diversity of their corporate board. They found that companies with a market capitalization of more than $10 billion and with women board members, outperformed comparable business with all-male board by 26 percent. The net income growth for companies with women on their boards averaged 14 percent compared to 10 percent for those with no female director.  It also showed that the larger the company, more likely they are to have women on their boards—73 percent have at least one female director. The United States and Europe take the lead on gender progression; however countries such as Japan and South Korea lag behind.  This is positive news for Vision 2020, with a national goal to increase the number of women in leadership positions by the year 2020. But, there is still much work to be done. Today, only 20 of the 480 Fortune 500 CEOs are women, with the most recent addition of Marissa Mayer at Yahoo. .

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About equalityinsight

Vision 2020 is a national coalition of organizations and individuals united in their commitment to achieve women’s economic and social equality. Join Vision 2020 today! http://www2.drexelmed.edu/vision2020giftsonline/Individual.aspx
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