A 4-year study of Fortune 500 companies has provided evidence that "Firms with More Women on Boards Perform Better Than Those That Don't". "We have established a correlation between diverse boards and strong corporate performance," says Kara Helander, vice president, Western Region at New York-based Catalyst.
The study, which is the second of Catalyst’s Bottom Line reports, looked at three critical financial measures: return on equity, return on sales, and return on invested capital, and compared the performance of companies with the highest representation of women on their boards to those with the lowest representation.
“Clearly, financial measures excel where women serve on corporate boards,” said Ilene H. Lang, President of Catalyst. “This Catalyst study again demonstrates the very strong correlation between corporate financial performance and gender diversity. We know that diversity, well managed, produces better results. And smart companies appreciate that diversifying their boards with women can lead to more independence, innovation, and good governance and maximize their company’s performance.”