Gender diversity on the board: let's review the data: here is the research that leads to an inescapable conclusion--there is a powerful linkage between a more diverse board and better corporate performance.

• Author: Sheppard, Nancy
• Position: DIRECTOR RECRUITMENT

When thinking about boardroom succession planning, nominating committees might want to review the talent acquisition theory developed by the Oakland A's in 2002 and showcased in the book (and movie) Moneyball to create a winning team. Based upon player statistics that other teams overlooked, A's Manager Billy Beane, backed by the research of a young Yale-educated economist in his first position in baseball, pursued and drafted a lot of undervalued players that some of the more high-profile teams thought didn't look the part and wouldn't amount to much. In many cases, board-ready women today may be the overlooked candidates that Beane would have recruited.

Who is the best candidate for your next board opening? Thinking of candidates in the context of "board team" needs is essential, so selecting the "most" qualified person may not be a straightforward decision. Many corporate boards--including 36% of the largest companies worldwide that have no women on their board, according to a Thomson Reuters 2014 report--are apparently ignoring the statistics that show gender diverse boards outperform those with limited diversity. (See http://share.thomsonreuters.com/pr_us/ gender_diversity_whitepaper.pdf.) There are more men named John, Robert, James and William than there are total women on corporate boards at U.S. companies, according to a report by EY issued this year. (See http://www.ey.com/ GL/en/Issues/Governance-and-reporting/Women-on-US-boards--what-are-we-seeing#gender-diversity-is-rising.)

The key research

As part of my organization's mission, we help boards understand the research and stats about how gender diversity has benefited other companies, and we provide them with board-ready candidates who are women. So, please read on if you'd like to review highlights of the research that shows why diversity in your boardroom should be an essential part of your director recruitment strategy:

* McKinsey & Company's "Diversity Matters" report issued in 2015 states, "Companies in the top quartile for gender diversity are 15% more likely to have financial returns above their respective national industry medians." (See http://www.mckinsey. com/insights/organization/why_diversity_matters.) McKinsey has done a number of other studies on the value of gender diversity in leadership in their "Women Matter" series from 20072014. (See http://www.mckinsey.com/features/ women_matter.)

* Credit Suisse's "Gender Diversity and Corporate Performance" report in 2013...