Increasing the Role of Women in Corporate Boardrooms
In January 2016 Congresswoman Carolyn B. Maloney (D-NY-12) unveiled a new report from the Government Accountability Office, which shows women are severely underrepresented on corporate boards, taking up just 16 percent of seats in the boardroom. The study, which Maloney requested in May 2014, shows that even if the rate of women joining corporate boards were doubled, so they were hired at the same rate as men, it would still take at least 40 years (2056) for women to reach parity.
Even if we doubled the rate at which women are hired to corporate boards, we still wouldn’t reach equality until 2056. That means a girl born today will still face the same disparities in the boardroom that her mother and grandmother faced. At a minimum the SEC should update its deeply flawed diversity disclosure requirements, so that corporations have to report gender diversity. The World Economic Forum Global Gender Gap Report for 2015 shows the United States dropped eight places from 20th to 28th, and today’s GAO report provides yet another example of just how large the gap has grown. We lag far behind many other industrialized countries that have taken proactive steps to improve diversity.
In response, Maloney is crafting legislation and urging the Securities and Exchange Commission to update existing diversity disclosure requirements, which do not even require the number of women serving on corporate boards to be reported. In the coming weeks, Maloney will introduce new legislation modeled on policies in Canada and Australia which would instruct the SEC to recommend strategies for increasing women’s representation on corporate boards, and require companies to report their policies to encourage the nomination of women for board seats as well as the proportion of women on their board and in senior executive leadership.
Key Findings of the report:
- In 2014, women comprised about 16 percent of board seats in the S&P 1500, up from 8 percent in 1997
- Even if equal proportions of women and men joined boards each year beginning in 2015, it could take more than four decades for women’s representation on boards to be on par with that of men’s.
- Even if every future board vacancy were filled by a woman, we estimated that it would take until 2024 for women to approach parity with men in the boardroom.
- GAO identified various factors that may hinder women’s increased representation among board directors. These include boards not prioritizing recruiting diverse candidates; few women in the traditional pipeline to board service—with Chief Executive Officer (CEO) or board experience; and low turnover of board seats
- Most stakeholders interviewed (15 of 19) supported improving Securities and Exchange Commission (SEC) disclosure requirements on board diversity.
- The United States lags behind other industrialized nations, including Australia, Canada, The United Kingdom, Germany and Norway, where serious, concerted efforts have been made to address discrimination against women in the board room.
In the coming weeks, Maloney will propose new legislation modeled on policies in Canada and Australia, which would instruct the SEC to recommend strategies for increasing women’s representation on corporate boards, and require companies to comply with those recommendations or explain why they have not.
More on Increasing the Role of Women in Corporate Boardrooms
WASHINGTON, DC – Congresswoman Carolyn B. Maloney (D-NY), senior member of the House Financial Services Committee, today spoke on the House floor urging all her colleagues to support H.R.1187, the Corporate Governance Improvement and Investor Protection Act, which includes an amendment offered by Reps. Gregory W. Meeks (NY-05), Maloney, and Ritchie Torres (NY-15), the Improving Corporate Governance Through Diversity Act. The bill passed by a vote of 215 to 214.
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As a member of Congress, I often need to ask, “Where are the women?” Whether it is a hearing on contraception or meetings about health care, women are too often left out and as a result left behind.
New York, New York — Nearly one hundred years after women picketed the White House demanding the right to vote, Congresswoman Carolyn B. Maloney (NY-12) today joined Teressa Shook, whose Facebook post launched the Million Women March, Joan Wages, the president and CEO of the National Women’s History Museum and other leading advocates for women's rights to call for new actions to advance equality for women. The leaders called on Congress to pass H.R. 19, a bill authored by Rep.
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NEW YORK-Congresswoman Carolyn B. Maloney (NY-12) was joined today by women leaders from across the city to celebrate news that the already iconic statue has been accepted into the Department of Transportation Art program and will remain in place on Wall Street through February 2018. Earlier this month Rep. Maloney sent letters both to Mayor de Blasio and DOT Commissioner Polly Trottenberg requesting that Fearless Girl be accepted into the program.
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