There were few glorified move on American corporate board rooms by female executives this year and despite the much hyped about high- profile appointment at companies like Yahoo! Inc. (NASDAQ:YHOO) corporate governance boards still have a lot of potential for gender equivalence.
According to a study conducted by a nonprofit research firm Catalyst, only 14.3 % of total top level executive openings in Fortune 500 companies were held by females as of June 30. The proportion of female representation in the board offices was phenomenal 16.6% during the same period. Bringing to the spotlight two female successes; Marissa Mayer’s climb to top level position at Yahoo! Inc. (YHOO:NASDAQ) and Sheryl Sandberg’s Facebook Inc. (NASDAQ:FB) board position , the research study also indicated the growth has been hedged compared to last year.
Not more than 40 % of Fortune 500 companies had as much as 25% female representation at board level, while 25% had no female executive at all according to the New York based Catalyst’s data.
Over a telephone interview, Rachel Soars a senior research associate in Catalyst, who also co authored the report termed the slacked progress towards filling the gap as “troubling,”. Only a fraction of the Fortune 500 is geared up for advancing the women leadership and 27.8% of them did not even have a female at the top job in the second quarter.
Females serving as top tier executive officers like presidents and vice presidents of a principal business unit went up by 1.4 % over the year 2011, per data gathered by Catalyst. While 27.8 percent of Fortune 500 companies have no women serving in top jobs as per data released for second quarter. 51 out of the Fortune 500 had an all male board as at the year end.
Toni Wolfman an executive adviser at Center for Women and Business at Massachusetts University, also shared Rachel’s concerns saying he feared that a large pool of quality talent will go to waste if employers don’t find ways to “support and advance women in their companies”
Meanwhile Credit Suisse Research Institute’s report showed drastic figures leading the research firm to conclude that companies under female governance could perform better than those without any female representation at the top tear. According to the data collected by CSR, from among the companies valuing above $10 billion those with women at board levels outperformed others having male only boards by 26% .
President of National Association for Female Executives, Betty Spence, also reported that companies with females on the boards and in top tier “to be more profitable,” . Betty’s New York-based association works to bridge the void by partnering with business organizations to pool for female human resource. Ina telephonic conversation she said the progress in female representation is partly dependent on the “talent that is out there and is not being tapped,”
According to Ernst & Young LLP report released yesterday, companies having one female director on board are more likely to hire other women than those which have an all-male board. The report also revealed that women overall the trend of females joining the U.S. corporate boards has been on the hike especially in the recent years and 40% of the female directors attained their positions in the last five years.
According to Brande Stellings , vice president corporate board services at Catalyst, after years of seeing stalled growth on the matter his firm is now all charged up “to come up with a solution.” . Catalyst is aiming to build a directory listing for potential candidates for female board and encourage it’s member organizations to sponsor the listing of their own nominated female directors.
The shares of Yahoo! Inc. (NASDAQ:YHOO) were up by 0.46% to close at $19.52, shares of Facebook Inc. (NASDAQ:FB) were up by 0.50% to close at $27.98.
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