How to Land a Spot on a Corporate Board

The research is clear. Companies with diverse corporate boards outperform their peers. In fact, a study from MSCI found that companies with at least one woman on the board outperformed other companies of similar size by at least 5% from 2012 to 2014. Experts at the GlobeSt. Elite Women of Influence conference in July will discuss the benefits of diverse leadership and how women can snag a coveted seat on a corporate board.

Jennifer Litwak, executive director of Housing on Merit and a speaker on the Winnin a Seat on Corporate Boards panel, recommends forming relationships with the right network. “Seek out strategic personal partnerships that can provide you a valuable peer network for accessing corporate boards,” she says. “For me these were Corporate Directors Forum and 50/50 Women on Boards. Corporate Directors Forum helps directors, and those who support them, build more effective boards through continuous education and peer-networking. 50/50 Women on Boards, which is the leading global education and advocacy campaign driving the movement toward gender balance and diversity on corporate boards.”

Litwak will speak on the panel along with Cynthia Daly, head of underwriting and asset management of Four Springs Capital Trust, and Annalisa Barrett, senior advisor of the Board Leadership Center at KPMG LLP.

Litwak has already seen a significant change in the diversity of corporate boards, saying that women now make up nearly a quarter of corporate board members. “Women now hold a historic 22.6% of the board seats of companies in the Russell 2000 Index as of June 30, 2020,” she says. “However, there is still room for improvement. 33% or 1/3 of the Russell 3000 companies have only one or no women directors.”

This is rapidly changing as more companies understand the importance of diversity in leadership. “Fundamentally, it’s good for business—literally,” says Litwak. “Numerous independent research studies have shown that public corporations with women on their boards out-perform boards with only men, as measured by profitability, productivity and workforce engagement.”

If corporations are looking for ways to expand and increase profitability, this is certainly an avenue for that. “Adding the talents and experience of highly qualified women directors provides a competitive advantage,” says Litwak. “Furthermore, institutional investors with trillions in assets are holding back their support when a corporate board has no women directors. As a Californian in 2018, we were the first U.S. state to pass the historic law requiring corporations to add specific numbers of women directors within three years.  A number of states have followed suit and passed, or are considering, laws related to diversity on boards because it makes logical business sense for their state economies.”