Gender diversification on boards was a prominent issue in 2018, and shareholders have never been more explicit in their expectations of companies. A CGLytics review entitled ''Diversity in the Boardroom of S&P 500 Companies'' reveals that some progress has been made. Companies have improved female board representation, but at a much slower rate than what is needed to meet targets set by some proxy advisors and new legislation.
In the past 12 months, the emphasis on gender diversity in the boardroom has never been greater. Demands from not only the media, but from campaigns such as ''Fearless Girl,'' and from shareholders, investors, proxy advisors and governing bodies, have made all companies, regardless of industry, sit up and take notice.
There are, of course, many benefits to improving boardroom gender diversity that go far beyond fresh perspectives and improved profitability. However, in order to build an effective board that meets current diversity standards, Nomination and Governance Committees need to find new ways to recruit the right - and the best - female candidates to fill their boards.
Appointments and departures of S&P 500 company directors between 2017 and 2018 show evidence that companies are actively trying to improve gender diversity on boards. While overall female representation grew by only 1%, there are some data points that demonstrate how S&P 500 companies are progressing.
- One-third of new board appointments in 2018 were women
- Telecommunications Services have the highest representation of women on boards
- Representation of female directors is growing, but radical action is required to hit targets
- Overboarding is no excuse not to recruit women to boards
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Media Highlights
Environmental, social and governance (ESG) issues have become more complex and multifaceted than ever before. At the same time, ESG continues to ascend on board and leadership agendas.
In this buyer’s guide, we explore what a market-leading ESG solution should look like and highlight the key areas organisations should be prioritising as they embark on their search.