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Women Board Members Can Help Reduce Gender Pay Gap

We have a ways to go before the gender pay gap is greatly narrowed, but one way to speed up that process is to add more women to corporate boards. So reports WTOP.

Women are paid about 80 cents for every dollar men receive based on median annual salaries. Women of color have it even worse, writers Dawn Doebler for WTOP. She is a senior wealth advisor at The Colony Group and co-founder of Her Wealth.

A McKinsey report from last year notes that women have beaten men in the last 30 years when it comes to earning college degrees and that more women are not taking time off to rear children and instead are staying in the workforce.

Chicago-based executive recruiter, Heidrick & Struggles, estimates that women will comprise half of new board directors by 2032. Additionally, European countries such as France, Norway and Sweden, have shown through legislative action and voluntary targets that greater gender diversity can be a reality. Women now comprise more than 30% of board positions in those countries.

Corporate boards "choose CEOs who then make decisions about compensation and other ways to spend profits, including how to support various social causes," Doebler writes. But, in addition to the positive social impact, having more women on boards will better position companies to beat out competitors.

"...Gender diversity in a company's leadership tends to attract and motivate talented employees who want leadership that reflects the diversity of today's talent pool," Doebler notes. "Women are increasingly influencing spending decisions for their family's wealth, so having women on a board provides more insight into the opinions and priorities of all consumers, not just males."

Read the full article from WTOP

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