WOMEN ON BOARDS

JUST THE FACTS

Gender Equity: Increase Representation of Women on Corporate Boards

THE STATE OF CALIFORNIA

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When SB826 became law, 1,275 women needed to be added to public company boards in California

Now, more than 98% of California companies have at least ONE woman director.

61.7%

418 companies (61.7%) need one or more women to join their boards by the end of 2021 to meet the gender requirement of SB826.

Womens' representation on CA public company boards has nearly doubled since 2018, from 766 to 1483

RACE / ETHNICITY FINDINGS FROM LCDA

Women hold 26.5% of California’s public company board seats, up from 15.5% in 2018.

Women of color currently hold 6.6% of California’s public company board seats even though they make up 32% of California’s population. 

Latinas hold 1% of California’s public company board seats even though they make up 19% of California’s population.

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THE IMPACT 

26%

improved stock performance over all-male boards 

Credit Suisse conducted a six-year global research study showing that women on boards improve business performance for key metrics, including stock performance; companies with women directors on their boards outperformed shares of comparable businesses with all-male boards by 26 percent.

45%

higher earnings for companies with female directors

A 2017 study by Morgan Stanley Capital International found that United States companies with three or more female directors reported earnings that were 45 percent higher per share than those companies with no female directors. 

There has been a greater correlation between stock performance and the presence of women on a board since the financial crisis in 2008. Companies with women on their boards significantly outperformed others when the recession occurred. 

A 2012 University of California, Berkeley study found that companies with women on their boards are more likely to “create a sustainable future” by, among other things, instituting strong governance structures with a high level of transparency.

Since 2018, based on research indicating superior market performance, BlackRock recommends at least two women directors serve on boards of companies in which it chooses to invest.

Several European countries have instituted requirements mandating board seats on companies headquartered in their nations to be held by women directors. Germany, Norway, France, Spain, Iceland, and the Netherlands, among others, all have such requirements.