This is interesting, and timely considering OPIRG McMaster* is looking for new board members for 2013-2014.
Why should boards have more female directors?
- Boards with high female representation experience a 53% higher return on equity, a 66% higher return on invested capital and a 42% higher return on sales (Joy et al., 2007).
- Having just one female director on the board cuts the risk of bankruptcy by 20% (Wilson, 2009).
- When women directors are appointed, boards adopt new governance practices earlier, such as director training, board evaluations, director succession planning structures (Singh and Vinnicombe, 2002)
- Women make other board members more civilized and sensitive to other perspectives (Fondas and Sassalos, 2000) and reduce ‘game playing’ (Singh, 2008)
- Female directors are more likely to ask questions rather than nodding through decisions (Konrad et al., 2008).
*2/3 of our current board identify as female