Diverse boards perform better because they are more likely to mirror their customer and client bases, and are less likely to be taken in by “group think.” Some companies and sectors get it, but there are still too many that don’t. Large companies are more likely to have at least one woman on their board.77 Of the companies on the Russell 3000 Index, women hold 18% of board seats, an increase from 16% in 2017.78 At the same time, women hold just 9% of board seats in the 25 companies that went public in 2017, up from 8% in 2016.79 Twelve of the 25 companies went public with no women, and 80% went public with no women, or only one woman, on their board.80
There are both voluntary and mandatory efforts to increase women on boards. The 30% Club focuses on companies voluntarily increasing the number of women on boards and in corporate leadership. Save in exceptional circumstances, The 30% Club does not believe mandatory quotas are the right approach.82 Led by CEOs and other high-ranking corporate leaders, The 30% Club approach complements individual company efforts and existing networking groups.
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