Thursday, July 22, 2021

Director Diversity

I think that boards having minority directors is a good thing. This would include having women on the board and minority peoples. There are statistics that tell us that when boards have 25% to 30% women on the board the company generally performs better. I think it would help even more if there were more minorities too. I would think that having women and minorities on board certainly helps to counter act “group think”.

I found that it is easy to tell if there are women on a board, since most give names and pictures. However, telling whether or not someone is of a minority group I found a lot more difficult. In any event, for the stocks I cover the table below shows how many boards have women or minorities in number and percentages. For example, 146 of the 155 companies I follow have women on their boards and that is 94% of the companies I follow. 51 of the boards I follow or 33% have people who I think for minorities. This is my first stab at this.

Diversity Women % Minority %
Women or Minority 146 94% 51 33%
None 9 6% 104 67%
Total 155 100% 155 100%

There is an Canadian article on diversity on boards at Canadian Lawyer. This site talks about women on boards. This article on Harvard Law sites talks about women and minorities on boards. Jeff Green on Bloomberg writes about what companies are doing in US ahead of SEC’s ruling on its board diversity proposal.

I may have underreported minority directors. I watched the British show, Lady Parts and thought the cast was 3 white women and 1 woman of color. But I read an interview with the stars of the show and they refer to themselves as 4 women of color. So, I have to wonder how good I am at picking out minorities.

On my other blog I wrote yesterday about Pulse Seismic Inc (TSX-PSD, OTC-PLSDF) ... learn more. Tomorrow, I will write about TECSYS Inc (TSX-TCS, OTC-TCYSF) ... learn more on Friday, July 23, 2021 around 5 pm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.

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