Companies with more women Directors are more successful

Companies with more women Directors are more successful
22/06/2018 , by , in ALLIED

According to Catalyst’s report on Women on Corporate Boards Globally which was published in March 2017 companies with more Women Board Directors experience higher financial performance –  Returns in terms of Return on equity, Return on sales, & Return on Invested Capital.

The Research elaborates that:-

  • Companies with “strong female leadership” (primarily measured by women on boards) were correlated with higher Return on Equity (ROE) than companies without (10.1% vs. 7.4%), as well as a superior price-to-book ratio (1.76 vs. 1.56).
  • Companies with fewer women on boards had more governance-related controversies than average.
  • In India Women held 7.3% in 2013, which increased to 11.2% of board members in 2015.
  • Diversifying Boards with women can lead to more independence, innovation, good governance and maximize the company performance.
  • More women on corporate board lead to more productivity & better problem solving. Each board member brings different knowledge and experience to the company’s problems and therefore can solve the problems more effectively.
  • Women on board ensures safety and security to other women employees of the company as well.
  • Women on board shows that issue of gender inequality is considered and henceforth brings gender equality.

As per SEBI (Securities and Exchange Board of India) all listed companies must have at least 1 Women Director on their board, according to new corporate governance norms finalized by capital market regulator.

A Few Corporate having 2 or more women directors are mentioned below:-

  1. Brigade Group with 4 women directors (Bangalore)
  2. Titan Company with 3 women directors (Bangalore).
  3. Axis Bank with 3 women directors.
  4. Biocon with 2 women directors (Bangalore).
  5. National stock exchange (NSE) with 3 women directors.


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