Opinion: Bay State's public companies overlook women on boards
By Andrea Teichman
Back in 2003, when The Boston Club first began tracking the number of women board members at the state’s 100 largest companies, it was generally thought that the number of women directors would increase as board seats became available. Sadly, the newest report out by that professional women’s organization, disproves that notion. Of the 58 independent director positions that became available between June 30, 2005 and June 30, 2006, only nine women were chosen to fill them.
How is it that some companies realize the benefits of diversifying their boards to include women, yet others keep their heads in the sand?
Last month Friendly Ice Cream responded to shareholder dissatisfaction over poor corporate governance by adding two seats to its five-person board of directors. Both new directors are men. The New England ice cream maker and family restaurant chain has never had a woman on its board. While woman directors might not have saved Friendly from its current problems, they would have certainly satisfied claims that the company has failed to elect truly independent directors to its board. The fact that the company caters to women and their families makes it all the more astounding that the board has remained all male.
Of course, some companies have seen the light. Take for example, TJX Cos. Inc. of Framingham, whose 12-member board includes four women. TJX is committed to choosing board members with diverse backgrounds and experiences who support its ethical oversight and governance. Carol Meyrowitz, president and as of January 28 new CEO of TJX, is the latest addition. She becomes the first woman to lead a Fortune 500 company in Massachusetts.
Cytyc Corp., a global leader in advancing women’s health care through innovative screening products, is another example. Women hold two seats on its 9-member board. Another woman sits on its Technical Advisory Board. The company also has two women executive officers.
A recent paper published in collaboration with the Wellesley Centers for Women says that a critical mass of three or more women enhances corporate governance and makes a positive change in the boardroom. The paper, called "Critical Mass on Corporate Boards: Why Three or More Women Enhance Governance," says that a lone woman director can be viewed as an outsider, and two women still can suffer from gender discrimination. But that having three or more women directors encourages substantial dialogue and creates a more open and collaborative environment.
Overall, the progress made by women in filling board seats of the hundred largest companies in Massachusetts has been too slow and arduous. Since The Boston Club first started analyzing the status of women in Massachusetts companies, the number of women holding board seats has grown at a snail’s pace, from 9 percent to 10.8 percent.
Massachusetts companies can – and should – do better.
Andrea Teichman is a partner with the law firm Day Pitney LLP in Boston and serves as chair of The Boston Club’s Corporate Board Resource Committee.
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