INCONSISTENCY, THY NAME IS MAN
By Jennifer Lee

File under ‘The ever-surprising male animal’. Men on corporate boards see one woman on the board as either a liability or a threat. Three women on the board, however, are just fine. In fact, men see this as an advantage to everyone, shareholders included.

This piece of boardroom anthropology emerged from a US study on the influence women have on corporate boards by the Richard Ivey School of Business at the
University of Western Ontario. The study found that men on boards marginalize their female compatriots if that woman happens to be the only woman on the board, often dismissing her opinion as a “woman’s point of view”. It gets slightly better when two women board members are present, particularly if the women offer different takes on an issue, thereby relieving the threat of a dreaded female bloc.

The presence of three women on a board seems to neutralize male suspicion, and even has a beneficial effect on discussion, promoting collaborative thinking. The study found that three women cease being seen as representatives of their gender and are viewed as individuals by other board members and the CEO. This, ironically, allows their more ‘female’ qualities to benefit the proceedings. They bring new perspectives, are not afraid of asking “stupid” questions, and are unwilling to let tough questions go unanswered.

The Ivey study was conducted in partnership with V Kramer & Associates and the Wellesley Centers for Women, who interviewed 50 women directors, 12 CEOs, and seven corporate secretaries from Fortune 1000 companies before establishing these home truths. These findings led the authors to conclude that three women on a board improve the prospect for better governance, due to a more open exchange of ideas and argument.

Women currently take up just 15% of the board seats in the Fortune 500, a figure that is growing by an average of half a percentage point per year, according to the 2005 Catalyst Census of Women Board Directors of the Fortune 500. Still, there
is evidence that companies are beginning to actively seek women to add to their boards. Headhunting firm Heidrick & Struggles reported in October that it is seeing more director searches targeted at women. An October survey by Women Corporate Directors of 77 of its members at 165 public companies showed that 69% had been asked to recommend women candidates for their board.