Studies have shown that companies that have a critical mass of women within their Board of
Directors do better. Respecting the fact that institutions renew the composition of their Board of
Directors over a period varying from 5 to 10 years, it is proposed that the Board of Directors adopt
a policy aiming at reaching parity within ten years at the latest.
Here are a few competitive advantages underlined by many studies on the matter of the presence
of women within Boards of Directors. Let us recall that all said studies have proven that
advantages increase with the number of women sitting on the Board.
-better performance during financial crises especially if they are caused by taking
excessive risks. Studies have shown that women’s management style is different from
men’s. In particular, with respect to risk-taking, women would tend to be more reticent and
therefore make less risky decisions and take more cautious positions;
-better governance: According to a Conference Board study, boards with more women
directors grant increased importance to monitoring conflicts of interest, risk monitoring,
financial control and maintaining good relationships with investors and the other
stakeholders in the organization;
-better decision-making thanks to discussions allowing different perspectives to be
encountered. In this respect, studies have proved that men give more importance to the
short term in their decisions, whereas women favour the long term. This generates points
of view that enrich reflection and broaden decision-making;
-better financial performance: according to a McKinsey study, companies where the
Board of Directors includes women have, on average, performance that is superior to their
reference index in terms of profitability of owners’ equity and operating results;
-better perception by investors: it should be noted in this respect that the importance of
women within Boards of Directors is part of the criteria used by the Globe and Mail’s
Board Games to assess the performance of organizations, as well as by Corporate
Knights to appreciate the performance of organizations with respect to social
responsibility.
Recognizing that the renewal rate of the composition of the members of Boards of Directors is
slow and wishing, as investors, for the selection of women members to be made in compliance
with the charter of directors’ skills, we propose that a representation parity policy be adopted by
the Board of Directors. This result will have to be reached within ten years at the latest.