Women Underrepresented in Corporate Pipeline Amid Signs Diversity Aids Performance
The Street article, “Women Underrepresented in Corporate Pipeline Amid Signs Diversity Aids Performance,” quoted Russell Reynolds Associates Consultants Anthony Goodman and Jack "Rusty" O'Kelley III on our study, "Institutional Investors Lead Push for Gender-Diverse Boards." The article is excerpted below.
Women are underrepresented at every level in the corporate pipeline, from entry level to the C-suite, even amid growing indications that having a more diverse workforce leads to better corporate performance.
To the second point, the report said companies should review their policies for hiring, promotions and performance reviews to look for opportunities to foster diversity. Firms should broaden the approach for evaluating director candidates, according to an April report from consulting firm Russell Reynolds.
"Boards should screen for the types of skills and competencies required by the company's strategic context and open to leaders in staff functions such as finance, marketing or operations to increase the talent pool of diverse candidates generally," wrote Anthony Goodman and Jack O'Kelley III for Russell Reynolds. "Boards should make every effort to source new directors via a diverse mix of channels rather than relying on existing networks."
Communicating a plan to incorporate gender diversity to investors is also important, Russell Reynolds said.
"Investors understand that sourcing qualified directors takes time, but they also want to see evidence that boards are making this a priority and taking steps in the right direction," Goodman and O'Kelley wrote. "Details on the steps being taken and results achieved to date should be readily available, ideally in the proxy or on the company website."
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