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1
SENATE RESOLUTION

 
2    WHEREAS, A McKinsey and Company study entitled "Women
3Matter" showed that companies where women are most strongly
4represented at board or top-management levels are also the
5companies that perform the best; companies with three or more
6women in senior management functions score more highly, on
7average, on the organizational performance profile than
8companies with no women at the top, and performance increases
9significantly once a certain critical mass is attained --
10specifically, when there are at least three women on management
11committees with an average membership of 10 people; and
 
12    WHEREAS, An Oklahoma State University study found that
13board diversity, including diversity with respect to gender and
14ethnicity, is associated with improved financial value; the
15study also found a significant positive relationship between
16the fraction of women or minorities on the board and firm
17value; and
 
18    WHEREAS, A report entitled "Women Directors on Corporate
19Boards" found that gender diversity on corporate boards
20contributes to more effective corporate governance and to
21positive governance outcomes through a variety of board
22processes as well as through individual interactions; that
23women directors contribute to important firm-level outcomes as

 

 

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1they play direct roles as leaders and mentors, as well as
2indirect roles as symbols of opportunity for other women, and
3inspire those women to achieve and stay with their firms; and
4that more recognition is needed for the valuable contribution
5of women directors to firm value; and
 
6    WHEREAS, Credit Suisse conducted a six-year global
7research study, commencing in 2006, of more than 2,000
8companies worldwide that showed that women on boards improve
9business performance by key metrics, including stock
10performance, as demonstrated by the fact that companies with a
11market capitalization of more than $10 billion, whose boards
12have women, outperformed shares of comparable businesses with
13all-male boards by 26%; and
 
14    WHEREAS, The Credit Suisse report included the following
15findings: (1) there has been a greater correlation between
16stock performance and the presence of women on a board since
17the financial crisis in 2008; (2) companies with women on their
18boards significantly outperformed others when the recession
19occurred; (3) companies with women on their boards tend to be
20somewhat risk-averse and carry less debt, on average; and (4)
21net income growth for companies with women on their boards
22averaged 14% over a six-year period, compared with 10% for
23those with no women directors; and
 

 

 

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1    WHEREAS, According to the study entitled "Women Directors
2on Corporate Boards: From Tokenism to Critical Mass" and a
3report entitled, "Critical Mass on Corporate Boards: Why Three
4or More Women Enhance Governance", attaining critical mass,
5going from one or two women directors to at least three women
6directors, creates an environment where women are no longer
7seen as outsiders and are able to influence the content and
8process of board discussions more substantially, and boards of
9directors need to have at least three women to enable them to
10interact and exercise an influence on the working style,
11processes, and tasks of the board, in turn positively affecting
12the level of organizational innovation within the firm; and
 
13    WHEREAS, The State of Illinois has seen a slight uptick in
14the percentage of women on corporate boards; in 2013, 17.5% of
15the corporate boards in the State included women, and in 2014,
16that percentage rose to 17.7; therefore, be it
 
17    RESOLVED, BY THE SENATE OF THE ONE HUNDREDTH GENERAL
18ASSEMBLY OF THE STATE OF ILLINOIS, that we acknowledge that the
19body of evidence to date concludes that companies perform
20better when their boards of directors and executive leadership
21include women and that the State of Illinois has a significant
22stake in protecting the shareholders of publicly held companies
23as well as in setting policies that enable such companies to
24perform better; and be it further
 

 

 

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1    RESOLVED, That we encourage equitable and diverse gender
2representation on corporate boards of directors and urge that,
3within the next three years: (1) every publicly held
4corporation in Illinois with nine or more seats on its board of
5directors have a minimum of three women on its board; (2) every
6publicly held corporation in Illinois with at least five but
7fewer than nine seats on its board of directors have a minimum
8of two women on its board; and (3) every publicly held
9corporation in Illinois with fewer than five seats on its board
10of directors have a minimum of one woman on its board; and be
11it further
 
12    RESOLVED, That a suitable copy of this resolution be
13presented to Judi Spaletto, Ph.D., Chicago Chapter Chair of
14WOB2020.