Despite the value of bringing more women onto corporate boards being increasingly recognized, US companies continue a sl
EY Center for Board Matters Women on US boards: what are we seeing? Despite the value of bringing more women onto corporate boards being increasingly recognized, US companies continue a slow march toward gender diversity. While progress akZ]af_eY\]$alakfglYll`]hY[]f]]\]\lgj]kmdlafYka_faÕ[Yfl]phYfkagfg^ZgYj\ diversity in the near term, or to compete with public sector approaches being taken in other markets.
This year, we highlight three observations about gender diversity on US corporate boards: 1. Af[j]Ykaf_ZgYj\kar]lgY\\^]eYd] directors is common 2. Female directors bring different ]ph]ja]f[]lgl`]ZgYj\ 3. Gender diversity is rising, but slowly
This report looks at diversity in US boardrooms at the time of their 2014 annual e]]laf_kYf\$mfd]kkgl`]joak]fgl]\$j]Ö][lkK H)-(([gehYfa]k&AlakZYk]\gf l`]=Q;]fl]j^gj:gYj\EYll]jkÌhjghja]lYjq[gjhgjYl]_gn]jfYf[]\YlYZYk]&Alak also part of the Center’s ongoing board diversity series and follows Diversity drives diversity: From the boardroom to the C-suite (2013) and Getting on board: Women join boards at higher rates, though progress comes slowly (2012). For EY’s global perspective, see Women on boards: global approaches to advancing diversity (2014) and Women. Fast forward *()-!&
1
Observation: Increasing board size to add female directors is common
Women as a percentage of new board members across all companies has af[j]Yk]\&9f\bmklYZgml)- g^K H)-(( companies have increased the number of female-held directorships since 2013.* @go]n]j$-) g^l`][gehYfa]kl`Yl increased directorships held by women last year did so by increasing board size. This raises questions around whether boards are holistically refreshing or simply adding more directors to the board. AlYdkg]phdYafko`ql`]dYj_]jl`]ZgYj\ size, the more likely it is for the board to include female directors.
Gfdq-, g^K H)-(([gehYfa]koal`Y board size of seven directors have at least gf]^]eYd]\aj][lgjn]jkmk10 ^gjl`gk] with 12 directors.
10
* Based on a subset of companies that held annual meetings in both years.
12
9
11
13+
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10% 14% 16% 17% 17% 19% 18%
February 2015
Women on US boards: what are we seeing?
2
Observation: Female directors bring different experience to the board a^l]]fh]j[]flg^K HEa\[Yh,(( Yf\)* g^K HKeYdd;Yh.((\aj][lgjk`ahk are held by women.
H]j[]flY_]g^ZgYj\k]Ylk`]d\Zqoge]fkaf[]*((.
22% 19%
S&P 1500
2006 S&P Composite 1500
:gYj\kg^dYj_]j[gehYfa]kYj]ka_faÕ[Yfldq egj]_]f\]j\an]jk]&O`ad]10 g^>gjlmf] 100 companies have at least one woman on their boards, only two-thirds of SmallCap companies do.
81%
11%
S&P 500
15%
2012
2013
16%
2014
Fortune 100
Af_]f]jYd$egj]oge]fYj]Z]af_Yhhgafl]\lgZgYj\Yf\]p][mlan]d]Y\]jk`ahhgkalagfkl`gm_` change continues to be gradual.
K H)-((ZgYj\Yf\]p][mlan]hgkalagfk`]d\Zqoge]faf*(), Positions held by men
g^K H)-(([gehYfa]k have at least one woman on their boards
84% 86%
90% 91%
Director 14% 2012
37% 27%
9%
16% 2014
93% 96%
Independent lead director
CFO
% of boards with one female director
10%
14%
10%
4%
7%
94% 96%
99% 96%
Independent chair
CEO 4%
1%
4%
4% Positions held by women
% of boards with two or more female directors Audit committee
44% 69% 88% S&P Composite 1500
S&P 500
Fortune 100
Chair >afYf[aYd]ph]jl Member
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