By :Do
you own shares in any FTSE350 companies? If so, we recommend you sell
them as soon as possible, and the objective of this piece is to explain
why. The key reason is that the government is intent on bullying FTSE350
companies into having gender parity on their boards, regardless of the
overwhelming evidence provided to the government on numerous occasions
(including in the course of House of Commons and House of Lords
inquiries) by Campaign for Merit in Business
(“C4MB”) which shows conclusively that increasing the proportion of
women on corporate boards leads to financial decline. It’s more an
inexperience effect than a gender effect. The short C4MB briefing paper
on the matter can be read here.
Shortly after David Cameron became Prime Minister in May 2010, leading a Conservative Party-led coalition, he appointed a Labour Party peer, Lord Davies of Abersoch, to report on how (not whether) to increase the proportion of women on major corporate boards. There was a great deal of talk at that time of the notion that companies could improve their financial performance by appointing more women onto their boards – the much-vaunted “business case” for doing so. The notion was, of course, always a fantasy. To sustain the fantasy, correlations (between female representation on boards, and enhanced financial performance) were misrepresented as causation, something which continues to this day.
Shortly after David Cameron became Prime Minister in May 2010, leading a Conservative Party-led coalition, he appointed a Labour Party peer, Lord Davies of Abersoch, to report on how (not whether) to increase the proportion of women on major corporate boards. There was a great deal of talk at that time of the notion that companies could improve their financial performance by appointing more women onto their boards – the much-vaunted “business case” for doing so. The notion was, of course, always a fantasy. To sustain the fantasy, correlations (between female representation on boards, and enhanced financial performance) were misrepresented as causation, something which continues to this day.