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Record #: R2018-1264   
Type: Resolution Status: Adopted
Intro date: 11/14/2018 Current Controlling Legislative Body:
Final action: 11/14/2018
Title: Call on Illinois General Assembly to enact legislation requiring greater equitable representation of women on corporate boards
Sponsors: Laurino, Margaret, Dowell, Pat, King, Sophia D., Hairston, Leslie A., Harris, Michelle A., Sadlowski Garza, Susan, Foulkes, Toni, Tabares, Silvana, Santiago, Milagros, Mell, Deborah, Austin, Carrie M., Mitts, Emma, Smith, Michele, Reilly, Brendan, Silverstein, Debra L., Valencia, Anna M.
Attachments: 1. R2018-1264.pdf
Referred to the Committee on Finance Chicago City Council November 14, 2018



RESOLUTION


WHEREAS, Female representation on corporate boards is severely deficient. Smaller companies are much more likely to lack female directors. Nearly one-half of the 75 largest IPOs from 2014 to 2016 went public with NO women on their boards; and
WHEREAS, Progress in increasing female representation on corporate boards is happening incredibly slowly. A 2015 study conducted by the United States Government Accountability Office estimated that it could take more than forty years for the number of women on boards to match men. The 2017 Equilar Gender Diversity Index revealed that it will take nearly 40 years for the Russell 3000 companies to reach gender parity — the year 2055; and
WHEREAS, A 2017 study by MSCI found that United States companies that began the five-year period from 2011 to 2016 with three or more female directors reported earnings per share that were 45% higher than those companies with no female directors at the beginning of the period; and
WHEREAS, A 2016 McKinsey and Company study concluded that companies where women are most strongly represented at board or top-management levels are also the companies that perform the best in profitability, productivity and workforce engagement. When there are at least three women on corporate boards with an average membership of ten directors, performance increases significantly; and
WHEREAS, Credit Suisse found that companies with at least one woman on the board had an average return on equity of 12.2%, compared to 10.1% for companies with no female directors. Additionally, the price-to-book value of these firms was greater for those with women on their boards: 2.4 times the value in comparison to 1.8 times the value for boards without women. Net income growth for companies with women on their boards averaged 14% over a six-year period, compared with 10% for companies with no women directors. For companies with a market capital...

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