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The tipping point: Women on boards and financial performance

A growing body of research shows that having three women on a corporate board represents a "tipping point" in terms of influence, which is reflected in financial performance.

Our analysis from last year looked at a snapshot of global companies in 2015 with strong female leadership, finding that they enjoyed a Return on Equity of 10. 1% per year versus 7.

4% for those without such leadership. This year, we analyzed U.S. companies over a five-year period (2011-2016).

U.S. companies that began the period with at least three women on the board experienced median gains in Return on Equity (ROE) of 10 percentage points and Earnings Per Share (EPS) of 37%. In contrast, companies that began the period with no female directors experienced median changes of -1 percentage point in ROE and -8% in EPS over the study period (see below exhibits).  .


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