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Why Companies Should Have Female Directors on Board

Updated: Jun 26, 2018





In this blog post we’ll tell you why companies should have female directors on board



Many people will tell you that there need to be more women in positions of power in companies. You've probably heard several concerns over the glass ceiling and the lack of women in executive, management, and CEO positions. Companies with diverse hiring are likely to receive plenty of praise for their decisions.





Plus, companies with diverse workplaces can help generate better ideas. When people of different backgrounds, cultures, viewpoints, and ethnicities collaborate, the possibilities are endless. Everyone brings their unique positions and experiences, leading to further innovation and creativity.

However, there are even greater incentives for diversity in the workplace. In fact, having more female directors can be directly correlated to a company's success. A study by Credit Suisse looked at companies with a market cap of over $10 billion. Researchers found that companies with at least one woman on board significantly outperformed companies with no women on board.

Globally, the companies with women on board generated 26% more return than companies without them. Asian-Pacific companies with women on board saw 55% more gain than those without women. US and European companies had gaps of 20% and 18% respectively.

Similarly, a report by Catalyst found that companies with the most women on board, on average, received 53% greater return on equity, 42% greater return on sales, and 66% greater return on invested capital when compared to companies with the least number of women on board.

Let those numbers sink in for a moment. Merely having a single woman in an executive seat made the company far more successful than it would've been otherwise. This success benefits everyone -- more money leads to bigger paychecks and more growth. The sky's the limits when it comes to diverse businesses.

Why are companies with female directors more successful? Perhaps diversity is the reason. Successful teams benefit a lot when their team members have different views, skills, and experiences. In short, if companies want to be successful, they should start promoting their women.


#women #business #girlpower #girlboss #arcane

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