Stay current on changes and developments in corporate law with a wide variety of resources and tools.
The world’s third-largest asset manager is pressuring the roughly 3,500 companies it invests in to put more women on their boards.
State Street Global Advisors, the asset management arm of State Street Corp., says it will vote against board members responsible for director nominations or governance at companies that fail to act on gender diversity.
“A key contributor to effective independent board leadership is diversity of thought, which requires directors with different skills, backgrounds and expertise,” Ron O’Hanley, SSGA’s president and chief executive officer, said in a March 7 statement issued on the eve of International Women’s Day. “Today, we are calling on companies to take concrete steps to increase gender diversity on their boards and have issued clear guidance to help them begin to take action.”
Companies from Avon Products Inc. to General Motors Co. have at least half of their board seats filled by women, according to a recent study conducted by Institutional Shareholder Services Inc. They represent less than 1 percent of S&P 1500 boards, however, and progress on gender parity is slow.
Companies often cite a limited pool of suitable female director candidates as a primary obstacle to achieving greater gender diversity in the boardroom. But State Street’s new guidance says the biggest barriers are current practices for nominating directors and behavioral biases that continue to undervalue the contributions of women in the workplace.
Research from MSCI Inc. shows that companies with at least three women on their boards performed better financially than those without any female directors.
To contact the reporter on this story: Andrea Vittorio in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Yin Wilczek at email@example.com
State Street Global Advisors' guidance on gender diversity is available at http://src.bna.com/mNn
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)