California Considering Mandating All Corp. Boards Have at Least One Woman
"In other words, any improvement in outcomes for women at the very top seem to be concentrated among the women who are directly affected by the reform: that is the women who become board members," said the paper.
The paper also noted that, for non-board women with qualifications equal to women on boards, the reform has not had any significantly statistical effect on the gender gap with similarly qualified men.
Another factor to note is that while 42 percent of board positions are now filled by women, this does not necessarily indicate that more women have board positions. Research indicates that many of these positions are held by a small group of elite women who hold board seats at multiple companies, in what is colloquially called the "Golden Skirt" phenomenon. The paper, which was published in 2011, found that eight women had more than four board seats at different companies, while only two men did, and that 21 women had more than three board seats at different companies compared to nine men.
"One explanation to this situation may be the selection process. As it is a general criterion for becoming a board member to have previous board experience, it makes the few women having such experience more likely to get more," said the paper.
On the other hand, there have been positive effects in other areas. The head of one of Norway's largest domestic investment funds said that the reform has made nomination committees more professional, as they have to work harder to find female candidates. Further, the Mission of Norway to the EU said that it has changed attitudes and political debate in the country, and the reform generally has support in the business community.
Another paper found that, based on a sample of 341 Norwegian firms, "women directors contribute positively and significantly to organizational innovation. Furthermore, the positive relationship between women directors and the level of organizational innovation is mediated by some decision-making culture dimensions: the degree of cognitive conflict and the degree of preparation and involvement during board meetings."
Another factor to note is that while 42 percent of board positions are now filled by women, this does not necessarily indicate that more women have board positions. Research indicates that many of these positions are held by a small group of elite women who hold board seats at multiple companies, in what is colloquially called the "Golden Skirt" phenomenon. The paper, which was published in 2011, found that eight women had more than four board seats at different companies, while only two men did, and that 21 women had more than three board seats at different companies compared to nine men.
"One explanation to this situation may be the selection process. As it is a general criterion for becoming a board member to have previous board experience, it makes the few women having such experience more likely to get more," said the paper.
On the other hand, there have been positive effects in other areas. The head of one of Norway's largest domestic investment funds said that the reform has made nomination committees more professional, as they have to work harder to find female candidates. Further, the Mission of Norway to the EU said that it has changed attitudes and political debate in the country, and the reform generally has support in the business community.
Another paper found that, based on a sample of 341 Norwegian firms, "women directors contribute positively and significantly to organizational innovation. Furthermore, the positive relationship between women directors and the level of organizational innovation is mediated by some decision-making culture dimensions: the degree of cognitive conflict and the degree of preparation and involvement during board meetings."