|Published : 16 Apr 2017, 13:34:23|
Companies prone to scandal for lack of female directors
FE Online Desk
Investors are concerned about the lack of female directors in many of the world’s largest economies. Numerous academic studies have suggested companies with diverse boardrooms perform better, are less prone to scandal, and avoid groupthink, according to a global media report on Sunday.
Women account for 20 per cent of directorships in the US, compared with 25 per cent in the UK and Australia, and more than 35 per cent in France and Norway, according to figures from MSCI, the data provider.
Helena Morrissey, a leading campaigner for gender equality in the workplace, urged other investors to harden their approach to the remaining companies lacking female directors.
Ms Morrissey, who will become head of personal investing at LGIM next month after leaving Newton, the investment boutique, earlier this year, said she felt “exasperated” by the lack of progress on board diversity in the US.
Last week Hermes EOS, an influential adviser to large investors, urged Rio Tinto shareholders to vote against the re-election of the Anglo-Australian mining company’s chairman at its annual general meeting because of slow progress in improving the diversity of its board.