Facts about Women on Corporate Boards in California
Data as of September 30, 2022
SB 826 DATA COMPARISON CHART 2018-2022
“Consistent improvement in corporate board diversity is evidence of a cultural shift and our progress towards gender equity in California. While there is still work to be done to ensure public company boards reflect the gender and ethnic diversity that sets California apart, steady increases in women’s representation means we’re moving in the right direction towards parity. More equitable workplaces translates to a more equitable society."
– First Partner Jennifer Siebel Newsom
THE STATE OF CALIFORNIA
Women hold 33.3% of California's public company board seats, 5% above the national average and more than double the 15.5% seats held by women in California in 2018
Now, 99% of California companies have at least ONE woman director.
509 companies (66.8%) have three or more women on their boards, up from 11% in 2018.
Womens' representation on CA public company boards has nearly tripled since 2018, from 766 to 2103.
SB 826 COMPARISON 2018 - 2022
For historical figures on these women on corporate board statistics, please see our data comparison chart here
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.
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.
Nasdaq has a new disclosure standard designed to encourage board diversity and to create more transparency for stakeholders
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.