- Today we publish a report from the Credit Suisse Research Institute which revisits a topic first written about two years ago (Gender Diversity and Corporate Performance) on diversity and the structure of corporate boards.
- Is gender diversity to the benefit of all stakeholders? We extend our analysis of board structure and corporate performance to consider senior management representation, introducing the Credit Suisse Gender 3000.
- The Credit Suisse Gender 3000 is a unique piece of analysis conducted by Credit Suisse analysts across the globe identifying where women work.
The Key stats:
Diversity is in focus today, not just for equality and governance priorities, but for the benefits for companies and shareholders.
Since 2005, companies with at least 1 female director have returned a compound 3.7% above their male-only counterparts.
Since 2005, ROEs of companies with a female board member have averaged 14.1% vs 11.2% for all male boards.
Where >15% of senior management is female, ROEs in 2013 were 14.7% compared to 9.7% at companies with <10%.
P/BV have averaged 2.3x since 2005 for companies with a female board director vs 1.8x for all male boards.
2013 P/BV for companies with >15% female senior mgmt was 2.6x vs 2.0x for those with <10%.
Perhaps surprisingly, companies with higher female participation in management have higher leverage, 57% where there is >15% in 2013 vs 35% where there is <10%.
In the CS Gender 3000 women make up 12.7% of board directors globally and 12.9% of senior managers – CEOs and direct reports. Women in management have disproportionally high representation in functions with less responsibility and fewer chances for progression to top management and board the “Management Power Line”.