This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Get More Women on Boards: Opinion

Stocks in this article: ELKEYFBPGNYTHPQWFCHRLAVPBAREWLPTUP

NEW YORK ( TheStreet) -- Presumptive Republican nominee Mitt Romney's choice of Rep. Paul Ryan of Wisconsin as his running mate means it's highly unlikely a women will be on a U.S. presidential campaign ticket from either major political party in 2012. That's too bad.

I'm not one who would vote for somebody, or hire them, based on gender alone but when more women occupy positions of power it's a sign of progress. In case you haven't noticed, our leaders in government and business -- generally speaking -- haven't been doing a very good job, and those arenas are largely dominated by men.

Remember when Wall Street, an industry that is overwhelmingly male, was bailed out of financial ruin by the U.S. government? Coincidence? I think not.

Data from a recent study by the Credit Suisse Research Institute backs me up. It showed that shares of companies with a market cap of more than $10 billion and with women board members outperformed those of comparable companies with all-male boards by 26% worldwide over a six-year period that included the global financial crisis.

That's a wide margin. What accounts for it?

The authors of the report told Bloomberg News that companies with women on their boards tend to be more risk-averse and have less debt on their books. Moreover, corporate boards that include women exercise more diligent oversight. They have better attendance records and they invest more efforts into auditing -- a key role of a corporate board that is too often neglected.

I could bore you with the complexities of the data and the rigor of the analysis that supports these findings, but is that really necessary? I don't know what planet you live on, but here on Earth this all seems like common sense to me. It's abundantly clear that we need more women in the halls of power.

In fact, I'd wager that if men stepped aside tomorrow and women took over all the positions of public power in the world, it would be a dramatically better place to live in short order. I recognize that's not going to happen anytime soon, but as an investor I certainly look for female leadership -- not only in the boardroom but also in the executive suites of the public companies in which I am a stockholder.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,834.85 +16.95 0.10%
S&P 500 2,069.96 +0.55 0.03%
NASDAQ 4,761.3870 +6.4950 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs