Abercrombie & Fitch recently nominated four new independent director candidates to the company’s board—all of whom are women. Their election would make 33% of Abercrombie’s board female, which is around twice the national average. While an increasing number of corporate boards give lip service to diversifying their ranks, the latest Catalyst Census showed the U.S. weighing in below eight other countries, with only 16.9% of women on boards in corporate America. Less than one-fifth of organizations had one-quarter or more female directors in both 2012 and 2013. One-tenth of companies had zero women on their boards. What’s more, for the past two years, less than a quarter of companies had three or more women serving jointly on their boards.
Over the years that Catalyst has been charting these trends, there has been little to no increase in women’s board participation, making Abercrombie’s relatively high percentage of potential female board members stand out all the more. Could Abercrombie’s bold move put pressure on other organizations to do the same? From a business standpoint, every company in the nation would be smart to follow suit. A separate report from Catalyst that examines The Bottom Line revealed Fortune 500 companies that had three or more women board directors in at least four of five years significantly outperformed companies with zero female board directors. The former firms experienced an 84% better return on sales, 60% better return on invested capital, and 46% better return on equity compared to the latter.