However, the seats are not divided evenly.
The proportion of women on boards is relatively small, and the situation is even worse for chairpersons. Only 27% of board members are women, and only 7% of chairs are women.
BOARD SEATS BY GENDER
CHAIRS BY GENDER
Many boards do not have members under the age of 40, with 75% of boards operating without millennial views at all. The different perspectives brought by different age groups should be seen as more valuable.
According to Harvard Law School’s report, research has revealed that board diversity and company’s financial performance are positively correlated.
This is supported by McKinsey’s Diversity Matters report, which shows that companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians. This is a proof point demonstrating why diversity is so important for companies. Diversity brings together different views, fresh thinking and unique expertise.
Achieving diversity cannot be driven by tokenism, but instead by a genuine appreciation of diversity. Such thinking also helps to understand the importance of diversity, as it no longer focuses solely on meeting minimum standards, for example with regard to gender quotas, but instead seeks to obtain the widest possible sample of different perspectives on boards. (Source: Harvard Business Review)
To learn more about diversity and inclusion, please visit Inklusiiv’s data bank.
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