Analysis of Australia’s smaller ASX-listed companies show that those with women on their boards pull in more revenue than the rest.
KPMG analysed data on companies within what it calls the ASX300+, those ASX companies ranked by market capitalisation between the 300th to 1000th.
As a group, these companies paid out $12.5 billion in wages over the year.
“Gender diversity is a key topic of interest for organisations of all sizes in Australia, and is often debated in the media and public forums,” says KPMG.
“However, rhetoric does not appear to be translating to action for the ASX 300+, with our research showing an average of just 9% of female directors on boards.”
Compare that to the ASX200 where 23% have women board directors.
And just 21 companies or 3% of ASX 300+ companies have a female chief executive officer.
“But the financial benefits of gender diversity have shown through,” says KPMG.
“Our research indicates that companies with females on their boards have grown their revenue at a higher rate than those without.”
The ASX 300+ companies with female CEOs delivered a 9% increase in revenue in 2016 compared to group-wide average of 0.5%.
The overall profitability of companies and returns to shareholders are also higher at companies that have a diverse board.
Yet 65% of ASX 300+ companies don’t have a female on their board.
Here’s a breakdown of female directors across the smaller listed companies: