Different reasons of positive consequence of term limits for women on boards, are they reasonable ?
” The portion of female corporate directors has been stuck at about 16 percent in the U.S., in part because board members can hold their positions for decades, Anne Mulcahy * said at a conference sponsored by the Women’s Forum Inc. of New York last week. That leaves little opportunity for new blood, she said.
With term limits, “your pool would inevitably be more diverse,” Mulcahy said. “That’s a very obvious reason this isn’t working,” she said, referring to slow progress in U.S. corporate efforts to narrow the gender gap.
Women often aren’t considered for boards unless they have prior board experience, Dublon said. Executives should focus first on moving women into positions running business units, she said.
“Boards are the tail of one’s professional career,” Dublon said. “We’re trying to force the increase without having more people in executive management.”
The research, which includes data from 2,360 companies, shows a greater correlation between stock performance and the presence of women on the board after the financial crisis started four years ago. Globally, female board representation increased to 59 percent last year from 41 percent at the end of 2005, according to the report.”
* former Xerox Corp. chairwoman and chief executive officer and a director at Johnson & Johnson, Target Corp. and The Washington Post Co.
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