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In 2018, women held 28.4% of board seats for S&P/TSX 60 companies but only 16.4%1 of total board seats.

A full 31% of S&P/TSX companies reported having no women on their board, while 35% had just 1 and 34% had 2 or more.

These statistics are important. Recent studies2 show that companies with women on their boards perform better than those without. The correlation3 between diversity and performance can be explained by the following:

  • Diversified groups make better decisions than homogenous groups.4
  • Gender-diverse companies have access to a wider talent pool.5
  • Gender diversification in human resources reduces turnover and increases employee engagement6

Proven benefits

In 2016, research showed that companies with at least 3 women on the board experienced an increase in median gains in return on equity (ROE) of 10% and an increase of 37% in earnings per share (EPS) between 2011 and 2016.7 Companies with no women on their boards in 2011 saw their ROE drop 1% and their EPS go down 8% over the same period.8

This same study shows that although the presence of only 1 woman on a board has positive impacts, having at least 3 truly makes a tangible difference in a company.9

30% target

Between 2015 and 2018, women accounted for an average10 of 12.6% new seats in companies on the MSCI ACWI Index. At that rate, it will take until 2029 for the 30% target to be reached.

The 30% target is a goal set by the 30% Club, a UK-based initiative founded in 2010 to increase gender balance on boards and in senior management for companies across the world.

Learn more about the 30% Club.

Notes:
  1. Board diversity: Gender diversity on boards and executive teams in Canada, Osler, 2018
  2. Why Diversity Matters, McKinsey, février 2015
  3. Recherches par McKinsey & CO, MSCI, BCG, Deloitte, CIBC et le gouvernement du Canada
  4. Hong et al., 2004
  5. Hunt et al., 2015
  6. The tipping point: Women on boards and financial performance, MSCI, 2016, page 15
  7. The tipping point: Women on boards and financial performance, MSCI, 2016, page 6
  8. The tipping point: Women on boards and financial performance, MSCI, 2016, page 3
  9. The tipping point: Women on boards and financial performance, MSCI, 2016, page 15
  10. MSCI ESG Research

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