In issuing the new gender diversity guidance, State Street Global Advisors is trying to drive board diversity through an active dialogue and engagement with company and board leadership.
State Street Global Advisors is issuing new gender diversity guidance to the more than 3,500 companies we invest in across three major regions (US, UK and Australia), designed to increase the number of women on corporate boards. As one of the largest investment managers in the world and a significant shareholder we believe that board diversity enhances board quality and effectiveness as it brings together directors with different skills, backgrounds and expertise.
Certain research shows that companies with greater levels of gender diversity have had stronger financial performance as well as fewer governance-related issues such as bribery, corruption, shareholder battles and fraud. A January 2017 report by the Conference Board suggests that the reason for the outperformance is largely attributed to the outside perspectives brought into the boardroom by adding women to the board.
Although there has been some progress made on the inclusion of women on corporate boards, still one out of every four Russell 3000 companies do not have even one woman on their board. And nearly 60% have fewer than 15% of their boards composed of women directors.
In issuing the new gender diversity guidance, State Street Global Advisors is trying to drive board diversity through an active dialogue and engagement with company and board leadership. Learn more about our framework to help boards enhance female representation.
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