Illinois General Assembly

Previous General Assemblies

Full Text of HR0439  99th General Assembly

HR0439 99TH GENERAL ASSEMBLY


  

 


 
HR0439LRB099 11715 MST 34820 r

1
HOUSE 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 3 or more women
6in senior management functions score more highly, on average,
7on the organizational performance profile than companies with
8no women at the top, and performance increases significantly
9once a certain critical mass is attained -- specifically, when
10there are at least 3 women on management committees with an
11average 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

 

 

HR0439- 2 -LRB099 11715 MST 34820 r

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 6-year global research
7study, commencing in 2006, of more than 2,000 companies
8worldwide that showed that women on boards improve business
9performance by key metrics, including stock performance, as
10demonstrated by the fact that companies with a market
11capitalization of more than $10 billion, whose boards have
12women, 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 6-year period, compared with 10% for those
23with no women directors; and
 

 

 

HR0439- 3 -LRB099 11715 MST 34820 r

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 2 women directors to at least 3 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 3 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 HOUSE OF REPRESENTATIVES OF THE
18NINETY-NINTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we
19acknowledge that the body of evidence to date concludes that
20companies perform better when their boards of directors and
21executive leadership include women and that the State of
22Illinois has a significant stake in protecting the shareholders
23of publicly held companies as well as in setting policies that
24enable such companies to perform better; and be it further
 

 

 

HR0439- 4 -LRB099 11715 MST 34820 r

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