New Research from Heidrick & Struggles, WomenCorporateDirectors, and Dr. Boris Groysberg Reveals Sharp Differences between Men and Women in the Boardroom

By Heidrick Struggles, PRNE
Wednesday, October 6, 2010

Gender divide on how to rebuild trust after the financial crisis

NEW YORK, October 7, 2010 - A majority of women in the boardroom believe that board diversity is key
to restoring trust after the economic crisis, but only about half of men and
women directors think their boards are doing a good job of advancing
diversity, according to new research conducted by Heidrick & Struggles
(, WomenCorporateDirectors ( (WCD), and Dr. Boris Groysberg of the
Harvard Business School. "There is a disconnect between what women directors
feel must be done and what's actually happening in the boardroom," says
Bonnie Gwin, Managing Partner of Heidrick & Struggles' North American Board
of Directors Practice.

The survey of nearly 400 male and female board directors reveals striking
differences in how men and women think about some of the biggest issues
boards face today. "There is a significant gender divide in how men and women
directors believe that boards should rebuild trust, as well as in rating how
their boards are performing their fundamental responsibilities," says Susan
, co-founder and co-chair of WCD, the only global community of women
corporate directors.

"Women directors, more than men, seem open to challenging the status
quo," adds Ms. Stautberg. "The issue of diversity, in particular, elicited a
sharp division among the men and women we surveyed, especially around the
topic of quotas in the boardroom and how regulatory changes will affect
diverse representation on boards."

Opinions on board effectiveness were also divided. "Women directors who
responded were somewhat more critical of their boards' performance vs. their
male counterparts," says Dr. Groysberg. "Our survey suggests that there are
still a lot of challenges as well as opportunities to improve effectiveness,
truly leverage diversity, and carefully think through regulations directed at

The Heidrick & Struggles/WCD/Groysberg survey was conducted in the Spring
of 2010 by Dr. Groysberg, the Thomas S. Murphy Associate Professor of
Business Administration at the Harvard Business School, and Deborah Bell, a
Research Associate at Harvard Business School. Respondents included 294 WCD
members and 104 male directors of public companies.

Key Findings

Key differentiators between women and men board directors emerged in the
areas of:

    -- How to rebuild trust in corporate boards after the shock of the
       financial crisis: Women seem to have much greater faith than men that
       increased boardroom diversity (65% of women vs. 35% of men), new
       regulations regarding executive compensation (45% vs. 22%) and proxy
       access (38% vs. 17%), and, especially, enhanced risk management
       systems (40% vs. 1%) would help restore trust. "This finding was one
       of the most revealing of the whole survey," says Ms. Gwin.
       "Interestingly, a clear majority of women directors expressed their
       feeling that more diversity in the boardroom would have a positive
       impact on rebuilding trust in boards. In addition, women directors
       preferred increased oversight, including a significant number who
       supported more regulation around executive compensation and enhancing
       proxy access. The women directors surveyed seem to express a feeling
       that the status quo has not worked and that they are open to more
       aggressive changes to rebuild stakeholder trust in boards."

    -- Boardroom diversity and the impact on board effectiveness: More women
       directors than men felt that three or more women on a board made it
       more effective (51% vs. 12%) and that women brought unique attributes
       to a board (90% vs. 56%).

    -- Diversity quotas and regulations: Quotas continue to be a
       controversial and divisive topic. While many more women than men (25%
       to 1%) supported them in the survey, the majority of responses from
       both genders did not favor instituting these requirements. Women also
       were much more supportive of the new SEC rule requiring nominating
       committees to explain in proxies the role that diversity plays when
       selecting new directors (62% vs. 43%). Men generally were more
       skeptical that new board governance regulations would improve
       diversity on boards. "It is interesting to see in the survey and in
       our conversations with women directors around the world how the idea
       of quotas is gaining traction," says Alison Winter, co-founder and
       co-chair of WCD, "especially given what is happening in Europe, where
       various countries are moving toward new regulations that require
       anywhere from a 20% to a 40% female quota in the boardroom. This alone
       raises the consciousness of nominating committees around the subject
       of diversity when considering new board candidates."

    -- Opinion of board performance and effectiveness in key areas: A
       significant number of both men and women directors felt that their
       boards were not highly effective in either succession planning or
       advancing diversity. Only 59% of women respondents and 61% of men
       rated their own board's succession planning process as "good" or
       "excellent," and only 51% and 53%, respectively, cited their board's
       advancement of diversity on the board and throughout the company as
       "good" or "excellent." However, women directors were somewhat more
       critical than men of their boards' performance and effectiveness in
       ensuring appropriate and competitive compensation practices (only 71%
       viewed their company as "good/excellent" in this area vs. 81% of men),
       and performance assessment processes (59% of women agree that the
       process is effective vs. 67% of men).

    -- Path to board service: About equal numbers of women and men
       respondents reported that they had actively sought their first board
       seats, but, despite the intense public focus on and support for
       increased boardroom diversity, it still took women a year longer to
       achieve their seats - 2.4 years vs. 1.4 years(1). Women see their
       positions enhanced more by board service than men do (31% cited that
       they serve on boards "for the prestige conferred by sitting on this
       particular board" vs. 18% of men, while 81% said that "serving on this
       board has enhanced my professional reputation" vs. 68% of men). Also,
       more women directors than men have advanced degrees (87% vs. 74%).

"The survey overall revealed several major disconnects between what women
directors believe is needed and what is actually happening in the boardroom,"
says Ms. Gwin. "For instance, while a majority of women believe that having a
diverse board would help rebuild trust, only about half the women surveyed
thought that their companies/boards were effective in promoting diversity at
the board or executive level. This fact, taken together with the longer lead
time for women versus men in landing a board seat, speaks to a real
'diversity gap' that continues to affect corporate boardrooms across the

For more information, please contact Davia Temin or Suzanne Oaks of Temin
and Company at +1-212-588-8788 or

About Heidrick & Struggles

Heidrick & Struggles International, Inc., (Nasdaq: HSII) is the
leadership advisory firm providing senior-level executive search and
leadership consulting services, including succession planning, executive
assessment and development, talent retention management, transition
consulting for newly appointed executives, and M&A human capital integration
consulting. For almost 60 years, we have focused on quality service and built
strong leadership teams through our relationships with clients and
individuals worldwide. Today, Heidrick & Struggles' leadership experts
operate from principal business centers in North America, Latin America,
Europe and Asia Pacific. For more information about Heidrick & Struggles,
please visit

About WomenCorporateDirectors (WCD)

WomenCorporateDirectors (WCD) is the only global membership organization
and community of women corporate directors, comprised of over 700 members
serving on over 850 boards in 27 global chapters. In this new era of
responsibility, WCD is committed not just to good governance, but to
governance with global vision. Smart boards are going global in members and
mindset. Our members share information and insights in order to insure best
practices in corporate governance around the world.

Our mission is to continue to expand the WCD community through
leadership, diversity, education, and best practices in corporate governance.
WCD fosters our international network by providing an intimate and trusted
community to learn, brainstorm and problem-solve global issues, while also
helping secure board and advisory board positions for numerous women around
the world. WCD offers local, regional, national, and international forums to
generate candid, thoughtful and confidential dialogue on issues facing
directors and their companies, learning from each other, and in the process,
helping all members navigate the challenges of conducting business in a
highly competitive and volatile global economy. The WCD network provides a
platform of turning ideas into action. WCD members comprise among the world's
most powerful and influential business women - the global business elite. For
more information, visit

About Boris Groysberg

Dr. Groysberg is an Associate Professor in the Organizational Behavior
unit at the Harvard Business School. His research focuses on the challenges
of managing human capital. In particular, his work examines how a firm can be
systematic in achieving a sustainable competitive advantage by leveraging its
talent at all levels of the organization from professionals to senior
executives and boards.

(1) All the male directors surveyed were Heidrick & Struggles board
placements over the past five years. This 2.4 years vs. 1.4 years statistic
reflects the average of what respondents reported as the amount of time that
it took them to achieve their first board service, which may or may not have
been affected by the involvement of an executive search firm.

Davia Temin or Suzanne Oaks of Temin and Company, +1-212-588-8788, news at, for Heidrick & Struggles

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