A quota sends the wrong message.

• Author: Bohn, Karen
• Position: BOARD DIVERSITY

But we are experiencing a board composition sea change.

BY KAREN BOHN AND SANDRA DAVIS

UNLIKE CURRENT DIALOGUE and legislation in Europe, we do not foresee U.S. authorities imposing quotas on companies to add more female board members. For one, while female board representation among U.S. firms is not great at 15% (according to Catalyst), it is still better than Europe's 11% (per the European Commission). Additionally, a quota sends the wrong message--women should be selected to boards based on their qualifications, not because of externally imposed criteria.

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American firms would be better served to pursue greater diversity of thought (including the female perspective) on their boards. Research is replete with data on companies with above-average female board membership that outperform their peers.

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Now is the time for companies to pursue more board diversity, as we are within a board composition sea change. Many corporate boards have members bumping up to mandatory retirement age. Additionally, companies increasingly prohibit their CEOs from serving on more than one external board, leaving board slots open to others.

Just as it took one person's initiative for the U.S. Supreme Court to achieve its historic 33% female membership, so too must...