Women Board Members Improve Company Performance

Well, I guess God's brainstorm to make half the world women wasn't so bad after all.

Ronda Muir reports in her Legal Management Blog Law People that Women Board Members Are Where The Money Is. Excerpt below.

In a report released October 1st, Catalyst, a New York consultancy, found that Fortune 500 companies with at least three women on their boards strongly outperformed those companies with fewer or no women. Based on a study of four years of corporate results, the correlation was found to be so direct that the more women who serve on a board, the better the bottom line.

The companies with the highest percentage of women on their boards had equity returns 53% higher, returns on sales 42% higher and returns on invested capital at least 66% higher than those companies with the least number of women board members. Higher returns kicked in once at least three women served on the corporation’s board, the study found, with companies having only three women
board members raising each of those returns an average of 5% over corporations
with fewer women.

Why?

You're going to have to read Ms. Muir's blog entry to find out. Here.