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REIT Boards Could Use More Diversity

Along with more female representation on boards, “there is also a need for REITs to recruit directors outside of their industry,” says Annalisa Barrett of Board Governance Research LLC.

By Paul Bubny | paulbubny | Updated on September 27, 2017

Photo of Annalisa Barrett Barrett’s firm conducted the study of REIT governance for Ferguson Partners Ltd.

CHICAGO—Although the REIT sector excels the broader market in a number of governance areas, the makeup of REIT boards would benefit from greater diversification. That’s among the conclusions of a study commissioned by Ferguson Partners Ltd. and issued Wednesday.

The study, which compared 151 non-mortgage REITs with the broader Russell 3000 index, found that demographically, REIT boards are likely to be predominantly male as well as older. Although just 21% of REIT boards are all-male, compared to 25% of all Russell 3000 companies, 73% of REIT boards have no more than one female director. In comparison, 39% of Russell 3000 boards have two or more female directors, compared to 27% for REITs.

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