Any doubt that there is still a glass ceiling for women? The Wall Street Journal recently reported on the dirth of female Directors on the Boards of Fortune 500 companies. A Board of Directors is an important governing body of a corporation. This group of top-level executives provide companies with direction and advice and a Director position is a powerful role. According to the article:
<< Major companies with three or more female directors achieved significantly better financial results than those with none between 2004 and 2008, according to a 2011 study by Catalyst, a nonprofit research group. In general, they outperformed companies with zero women on boards by 84% for return on sales, 60% for return on invested capital and 46% for return on equity.
Yet women occupy just 16% of directorships at Fortune 500 companies, Catalyst reported earlier this month. The Conference Board, a private research group, found in a recent study that even if 25% of the Fortune 500 board seats available annually in the next eight years are filled by women, the percentage of female directors in that sample would only be about 23% by 2020. >>
Hmmmm….so obviously, ladies, we still have some work to do! But kudos to the organization called 2020 Women on Boards, which is pushing to raise women’s boardroom representation to at least 20% by 2020. Late next month, the group plans to publish a list of the Fortune 1000 businesses with no female directors.
For more information about why it is important to increase female participation of boards AND how you can help, check out the website for 2020 Women on Boards!