Having women on the board ‘boosts a company’s financial performance’

APPOINTING women to the board of directors can boost a company’s financial performance, according to the early results from a massive Norwegian study.

Bonnie Clarke, who sits on the Women’s Enterprise Policy Group, a lobbying body, said the early evidence from the research was showing that businesses with female representation at board level were experiencing more financial stability, delivering better returns on investments and improving the development of their staff.

Norway introduced a quota system in 2008 to force listed companies to appoint more women to their boards, a move being monitored by other European countries, including France, Germany and Spain.

Clarke, the Scottish director of recruitment firm Badenoch & Clark, said the full report was expected to be released in February. “I’m not a feminist and I’m not about to say that all men are evil and wrong. This about equality,” she said.

“Scotland was the birthplace of the Enlightenment – let’s be enlightened in the way we transform boards. It’s part of our national heritage to lead the way so I’m throwing down the gauntlet and calling on Scottish businesses to lead the way here too.”

If the study does demonstrate better financial results for firms with more women on their boards then it would add to the body of evidence being built up on the subject.

A report published last month by French banking giant Société Générale said 30 per cent was the “magic number” of women needed on a board to improve a company’s performance.

Previous research papers by Citigroup, McKinsey and Catalyst have also been cited by campaigners as suggesting there is a business case for greater boardroom diversity.

Elin Hurvenes, one of campaigners who brought about the controversial quota system in Norway, told Scotland on Sunday in September that the attitudes of UK chairmen toward diversity are far better than the reaction from Oslo-listed firms in the run-up to the law being introduced.

But Helena Morrissey, chief executive of Newton Asset Management and founder of the “30 per cent Club”, which campaigns for greater boardroom diversity, last week warned that, despite the Norwegian requirement to have 40 per cent female boardroom representation, only 2 per cent of chief executives’ positions in Norway are held by women.

She also referred to a study by the University of Michigan, which found close to a quarter of Norwegian firms chose to de-list from the stock exchange rather than submit to the quota scheme.

Clarke’s comments came as Badenoch & Clark unveiled plans to double the headcount in its Glasgow office as it takes on more work in the financial services industry and in social housing and other parts of the public sector.

Clarke, who joined the firm eight weeks ago from rival Hays, said her company was noticing several trends within its key sectors.

She said accountants working for banks and other financial service companies reluctantly were having to settle for six-month contracts because of the lack of permanent positions available.

But she said some professionals working in risk management were leaving their full-time jobs to take on day-rate contracting work, because of the higher pay available and the way in which project work would enhance their career prospects.