State Street calls on buy-side to increase female board members

SSGA has called on 3,500 companies to increase the number of women on corporate boards.

State Street Global Advisors (SSGA) has called on the investment management industry to increase the number of female corporate board members.

More than 3,500 companies that State Street invests in on behalf of its clients, -representing more than $30 trillion in market capitalisation - have been asked to take steps to improve representation for the initiative.

To mark the occasion, SSGA has placed a statue of a young girl to represent the future on Wall Street in New York City.

Rakhi Kumar, head of corporate governance at SSGA, explained an analysis found most large cap company boards in Australia, the UK and the US have at least one female director, “but have yet to fully embrace gender equality in their ranks.”

She adds: “We believe boards have an important role to play in increasing gender diversity and believe our guidance can help directors take action now.”

SSGA explained a recent report found companies with strong female leadership generated a return on equity of 10.1% per year versus 7.4% for those without a critical mass of women at the top, which is a 36.4% increase of average return on equity.

Ahead of International Women’s Day, the TRADE explored what life is life for women on buy-side trading desks.

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