Categories: Expert Blogs

Missing Pieces: The Lack of Women on Fortune 500 Boards

Not much has changed. These are the depressing findings of the 2010 Alliance for Board Diversity (ABD) in their recent study of the boards of our nation’s largest companies. In their publication, “Missing Pieces,” they show that six years after the first ABD Census, white men still overwhelmingly dominate corporate boards. From 2004 to 2010, women gained a grand total of 16 board seats in Fortune 100 companies to move from holding 202 seats to 218. Men held steady at 993. For the Fortune 500, the picture is even bleaker. Of the 5,463 available board seats available in 2010, women held a mere 856 while men occupied 4,607.

This news is frustrating for women—studies have shown that a greater number of women at the top of an organization equates to more women in management positions elsewhere in the company. The more female role models, champions and sponsors we have, the more it helps our careers.

However, these numbers are equally alarming for shareholders. Numerous studies have shown that greater diversity on boards and in the executive ranks leads to higher return on sales and return on equity for those companies. Scott Page wrote a groundbreaking book called “The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies” which quantitatively shows the benefit of diversity on any team. It’s not just the women who are losing.

Perhaps it’s time for shareholders to use their voice. By promoting inclusion of women and minorities on corporate boards they will be helping the company’s bottom line…and their own.

By Erin Wolf

Cheryl

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