Research Summary: Women on Boards and Board Size Matter

by | Oct 28, 2013 | Gender Research, InPower Women Blog

Title: Women on Boards, and Board Size, Matters For Performance

Study: The Evershed Board Report (John Heaps, Chairman. PR Moment 2011)

Finding: The size and shape of a board play a tangible part in the success, or otherwise, of an organization.

Note about The Woman Effect Research Index: This study was performed by researchers not affiliated with InPower Women. Our Research Index includes all relevant research to the subject of women, business and power. We do not influence how the research was conducted or reported by the researchers. In our abstracts, we focus on pulling out the most actionable advice for individual women. To suggest additional research we should index, or discuss our choice of abstract focus, please contact us

InPower Insight: The presence of women on boards are not the only factor in good board performance, but it is an indicator of board success.

Summary:

The report by Evershed found that when companies had a  lower number of directors on their boards, they were better performing. This was found to be true for companies in Hong Kong, US, and Europe. Companies analyzed had boards with between six and thirty two directors, Europe having the highest number. Better performing companies also had a higher percentage of female directors and more independent directors. This was found to be true especially for banks and UK companies. Share-price performance increased when companies had more independent directors. Unsuccessful companies had board members who held additional positions within the company. It was also found that the chief executive of another organization proved to be an asset on the board of another company. Finally, more successful companies contained more shareholders that had a great shareholding within their respective companies.

Personal Coaching Tip: If you’re working to be on a board of directors, take the time to understand all the characteristics of high-performing boards, including overall size and internal vs. external makeup. No matter what you hope to accomplish in your career, know that research continues to find that the presence of women on any team, at any level, improves its performance. You matter!

Guide to Women in Leadership

Organizations with women in their executive suites regularly out-perform others. Yet rising female executives (and their mentors) are frustrated at how hard it is to break through the glass ceiling. In this extensive guide, Executive Coach Dana Theus shares her tried and true strategies to help women excel into higher levels of leadership and achieve their executive potential.

April French

April French

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