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Contributions by Damion Rallis
The Tipping Point - Women on Boards and Financial PerformanceDec 13, 2016 Download Document
A growing body of research shows that having three women on a corporate board represents a “tipping point” in terms of influence, which is reflected in financial performance. U.S. companies that began the 2011-2016 period with at least three women on the board experienced median gains in Return on Equity (ROE) of 10 percentage points and Earnings Per Share (EPS) of 37%. In contrast, companies that began the period with no female directors experienced median changes of -1 percentage point in ROE and -8% in EPS over the study period. However, a causal link was not established.
Research Insight - Women on Boards: Global Trends in Gender DiversityNov 30, 2015 Download Document
Many institutional investors are increasingly focused on the gender composition of company boards. Our latest research shows that companies in the MSCI World Index with strong female leadership generated a Return on Equity of 10.1% per year versus 7.4% for those without, as of September 9, 2015, though we could not establish causality. We found that companies lacking board diversity suffered more governance-related controversies than average. Global asset owners are promoting a 30% global female director goal; we estimate that this goal is unlikely to be attained until 2027. We explored two ways to reach the 30% goal as early as 2020.