The Bottom Line: Corporate Performance and Women’s Representation on Boards (2004-2008)
The Bottom Line: Corporate Performance and Women’s Representation on Boards (2004–2008) is the fourth in Catalyst’s Business Case series. The business case for women in management contends that companies that achieve diversity and manage it well attain better financial results, on average, than other companies. In this report, Catalyst used three measures to examine financial performance: return on sales (ROS), return on invested capital (ROIC), and return on equity (ROE).
- Companies with the most women board directors (WBD) outperform those with the least on ROS by 16 percent.
- Companies with the most WBD outperform those with the least on ROIC by 26 percent.
- Companies with sustained high representation of WBD, defined as those with three or more WBD in at least four of five years, significantly outperformed those with sustained low representation by 84 percent on ROS, by 60 percent on ROIC, and by 46 percent on ROE.
What We Do
NCRW is a network of leading university and community based research, policy, and advocacy centers with a growing global reach dedicated to advancing rights and opportunities for women and girls. We also have a Corporate Circle comprised of senior diversity professionals from leading U.S. and global member companies and a Presidents Circle of college and university leaders who share our commitment. NCRW harnesses the collective power of its network to provide knowledge, analysis, and thought leadership on issues ranging from reducing women’s poverty to building a critical mass of women’s leadership across sectors.