TRANSFORM THE FUTURE WITH DIVERSITY

Diverse advisory and governing boards are essential. The Fourth Effect can help.

87

# of women get promoted for every 100 men.

2.3x

Frequency at which men receive private capital investments over women

KNOW
THE
FACTS

132

Projected # of years until we reach global gender parity

$3 trillion

Value of additional global assets under management if women invested at the same rate as men

7%

CEO roles held by women in the United States

82%

What women earn as a % of what men earn, a measure that hasn’t changed in 2 decades

Embracing board diversity isn't just ethical —

It's also financially beneficial.

MCKINSEY

“The business case for inclusion and diversity (I&D) is stronger than ever. For diverse companies, the likelihood of outperforming industry peers on profitability has increased over time, while the penalties are getting steeper for those lacking diversity."

HARVARD BUSINESS SCHOOL

“Based on an analysis of more than 150 companies, the authors find that after women join the top management team, firms become more open to change and less open to risk, and they tend to shift from an M&A-focused strategy to more investment into internal R&D. In other words, when women join the C-suite, they don’t just bring new perspectives — they actually shift how the C-suite thinks about innovation, ultimately enabling these firms to consider a wider variety of strategies for creating value."

CATALYST ORG. & NASDAQ

"...startups founded and cofounded by women are significantly better financial investments. For every dollar of funding, these startups generated 78 cents, while male-founded startups generated less than half that—just 31 cents."

Understanding Boards: The Power of Advisory and Governing Teams

    • Advisory Boards are an excellent way to get started! Be able to leverage board seats at smaller startups for ones at larger and larger companies as you gain experience and as the startup grows.

    • Avoid being turned down for board seats at large private or public companies for lack of experience.

    • Earn equity and/or invest in the startup you are advising.

    • Get involved in the entrepreneurial ecosystem.

    • Position yourself to be chosen for the governing board of the startup you are advising.

    • Personal brand building as a strategic thought leader.

    • Access to “Board Networks” which are different than professional networks which will lead to more opportunity.

    • Many of the same tangible benefits that apply to advisory boards apply to governing boards.  Governing board service provides access to “Board Networks” which are different than professional networks which will lead to more opportunity; you can use the experience to build your own personal brand as a thought leader, and it will help you be seen as a strategic leader rather than an operational one.  

    • It is also an excellent opportunity to sharpen leadership skills.

    • Earn equity, investment opportunities, and income:  Fiduciary boards tend to come with higher compensation, so a governing board opportunity is an excellent way to supplement your earning power.  

The tide is turning.

Don’t get left behind.

  • How diverse teams unlock product innovation

    Board diversity is linked to greater profitability: a study conducted by the Boston Consulting Group "reported that companies with above-average diversity at the management level generate 19% higher innovation revenues than companies with below-average diversity."

    What board diversity means for modern governance & why it’s important

    "Having a diverse board is in the interests of all company stakeholders. Good corporate boards depend on diverse perspectives and skills. Businesses and organizations face many challenges and complexities, so having a broad set of board perspectives and competencies is a primary asset to problem-solving and realizing the company vision. For this reason, diverse boards have been shown to outperform non-diverse membership."


  • NASDAQ TO ADVANCE DIVERSITY THROUGH NEW PROPOSED LISTING REQUIREMENTS

    "...the new listing rules would require all companies listed on Nasdaq’s U.S. exchange to publicly disclose consistent, transparent diversity statistics regarding their board of directors. Additionally, the rules would require most Nasdaq-listed companies to have, or explain why they do not have, at least two diverse directors, including one who self-identifies as female and one who self-identifies as either an underrepresented minority1 or LGBTQ+. Foreign companies and smaller reporting companies would have additional flexibility in satisfying this requirement with two female directors."

    STATEMENT ON NASDAQ'S DIVERSITY PROPOSALS – A POSITIVE FIRST STEP FOR INVESTORS

    Aug. 6, 2021 "Today, the Commission approved Nasdaq Stock Market LLC’s proposed rule changes related to board diversity and disclosure.[1] The new listing standards will require each Nasdaq-listed company, subject to certain exceptions, to have at least two diverse board members or explain why it does not.[2] The new listing standards also will require disclosure, in an aggregated form, of information on the voluntary self-identified gender, racial characteristics, and LGBTQ+ status of the company’s board.[3] We support the proposal because it represents a step forward for investors on board diversity."

    GOLDMAN SACHS’ COMMITMENT TO BOARD DIVERSITY

    "Effective July 1, Goldman Sachs will only underwrite IPOs in the US and Europe of private companies that have at least one diverse board member. And starting in 2021, we will raise this target to two diverse candidates for each of our IPO clients."