Correlation: Women on the Board = Higher Returns

February 22, 2012 1:48 pm

Today we’re driving down to Richmond to hear what Governor McDonnell has to say about “The Year of the Entrepreneur.” The press conference is part of StartUp Virginia (and StartUp America), programs designed to celebrate, inspire, and accelerate high-growth entrepreneurship and energize our local economies. I’m wondering how many women will be at the event.

According to a recent article in TechCrunch, gender bias in the executive suite and boardroom still exist at astonishingly high levels.

  • 12 of the Fortune 500 are led by women (down from 15 in 2010)
  • 15.7% of the Fortune 500′s board members are women
  • Less than 10% of California tech company board members are women

I wonder if Virginia will fare better for the fairer sex. The Metro DC area has become a hotbed of startup activity recently, so there’s opportunity to diversify in the boardroom. And we should. Research shows that companies with women on the board ‘demonstrate higher collective intelligence.’ These companies produce 48% better return on equity. Wow. Leadership style apparently does matter.

Men have dominated corporate power structures since the industrial age began. It used to be that women had to adopt their commonly accepted style in order to climb the corporate ladder. Do misperceptions about style and positional power still hold us back?

If a 48% better return on equity holds constant, I wonder how much value the glass ceiling has squandered over time. Let’s get on track and balance our boardrooms through diversity in all forms. It shouldn’t be hard to beat the pants off of California!

Post By Marcia Moran (314 Posts)

Marcia Moran

Marcia Moran

Marcia Moran helps organizations reimagine what’s possible and provides the framework for clients to achieve stellar, long-term results.

As a Performance Architect, Marcia uses the principles discovered through neuroleadership and positive psychology to deliberately design the employee experience and corporate culture. Blended with pragmatic systems design, these elements free people to play to their strengths while reducing strife in the workplace. As a result, people can push beyond their known limits as individuals, as teams, and as companies.

Marcia is also the Vice President of Marketing for Intelishift, a colocation company with operations in Ashburn, VA and Silicon Valley. Prior to moving to the Metro DC area, she worked as a business consultant for Up ‘N Running and advised startups and small businesses in the areas of management, operations, and marketing.

Marcia earned an MBA from Chapman University. She loves to travel, speaks Norwegian, and unwinds by kayaking and painting landscapes. Marcia recently co-founded Positive Business DC with Shannon Polly and Donna Hemmert. Positive Business DC provides resources to help people increase the levels of well-being in the workplace and at home.

Website: → Performance Architect

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