This document discusses the status of women on corporate boards globally and in different economic regions, why increasing gender diversity on boards matters for factors such as stock performance, accounting practices, and investor behavior, and what actions like legal requirements, governance codes, and investor initiatives can be taken to further promote gender diversity on boards. While progress is being made in increasing women's representation, more work remains to be done to improve diversity according to the information and data presented.

1. Women on Boards:
Where we are, Why it matters, What can be done
Kimberly Gladman, Ph.D., CFA – Director of Research & Risk Analytics
Michelle Lamb – Senior Research Associate

2. Order of Presentation
1. Where we are
• Overall stats - global and by economic bloc
• Reaction to study/headlines re: France vs US
2. Why it matters
• Gender diversity impacts
3. What can be done
• Drivers of female board representation
• Our findings post-quota in France and Italy

3. Where we are:
Global progress is happening, slowly
Q4 2009 Q4 2010 Q4 2011
Aggregate WOB
9.3% 9.8% 10.5%
Boards with ≥ 1 Woman
56.1% 58.2% 60.2%
Boards with ≥ 3 Women
8.3% 8.5% 9.8%
Boards with Female Chair
2.0% 2.2% 2.1%
Female Audit Committee Members
11.5% 11.9% 12.5%
Female Audit Committee Chairs
6.5% 7.0% 7.4%
Female Gov/Nom Committee Members
11.8% 11.7% 12.1%
Female Gov/Nom Committee Chair
6.2% 6.5% 6.8%
Female Remuneration Committee Members
11.1% 11.3% 11.8%
Female Remuneration Committee Chair
6.2% 7.1% 7.0%

4. Industrialized vs. Emerging
Industrialized Markets Emerging Markets
(n=3,617) (n=704)
Percentage Women On Boards 11.1% 7.2%
Increase in % WOB 2009-2011 1.4% 0.5%
Boards with ≥ 3 Women 10.5% 6.3%
Boards with ≥ 1 Woman 63.3% 44.3%
Boards with Female Chair 1.9% 3.2%
Female Audit Committee Members 13.3% 7.3%
Female Gov/Nom Committee Members 12.6% 6.8%
Female Remuneration Committee Members 12.4% 7.0%
Female Audit Committee Chairs 8.3% 2.6%
Female Gov/Nom Committee Chair 7.7% 1.6%
Female Remuneration Committee Chair 7.7% 3.3%

7. Why it matters: Stock price
• Credit Suisse (2012): gender-diverse large-cap
boards in MSCI ACWI outperform by 26% in
2005-2011
• MSCI ACWI small- and midcaps outperform by
17%
• Most outperformance post-financial crisis

8. Why it matters: Accounting
• Parker et. al. (2012): gender-diverse boards
have fewer restatements
• Gul et. al. (2008): gender-diverse boards have
more appropriate levels of oversight
• Levi et. al. (2008): gender-diverse teams
produce more fairly-priced acquisitions

9. Why it matters: Investor behavior
• Studies of trading behavior: women less
prone to behavioral finance errors
• Fintrader.net (2012)
• Odean and Barber (2001)

10. What’s going on?
Multiple explanations:
• Women may be less overconfident/more
collaborative
• Diversity in general (not just gender diversity)
may improve group decision-making

11. Ways to increase gender diversity
• Legal requirements
• Governance codes
• Investor initiatives
• Special cases (South Africa)

12. Case Studies: France
• French companies in the MSCI World
• Newest director appointments
• Overwhelming majority well-qualified
• Negligible overboarding
• Many new to public boards, but with private
company, non-profit experience

13. Case Study: Italy
• Italian companies in the FTSE MIB
• All female directors
• Overwhelming majority well-qualified
• Significant minority from prominent families
• Non-Italians most likely to be overcommitted

14. Q&A
• Time for your questions
• For more, contact:
kgladman@gmiratings.com
mlamb@gmiratings.com