Cristina Banahan is an Associate and Gabriel Hasson is a Senior Associate at ISS Corporate Solutions. This post is based on an ISS Corporate Solutions memorandum by Ms. Banahan and Mr. Hasson.
Proponents of more women on corporate boards have brought forth multiple arguments that have become widely acceptable in the field of corporate governance and more broadly. First, there is the normative argument based on equity and fairness, which suggests that women and men should have an equal opportunity to attain leadership positions, including corporate board memberships. Second, expanding the perceived pool of director candidates to an under-tapped population of highly qualified women leaders opens a new source of managerial talent, who are also more representative of the general workforce and society. Third, women directors are likely to bring fresh and diverse perspectives to complex issues. Finally, the economic argument for gender diversity, backed by a growing literature [1], suggests that board gender diversity can serve as a driver for better performance and increased financial returns.