Getting on board: 2013 mid-year update

EY Corporate Governance Center August 2013

Getting on board: 2013 mid-year update ;geaf_gmlg^l`]*()+hjgpqk]Ykgf$Yj]na]oZql`]=Q;gjhgjYl]?gn]jfYf[];]fl]jÕf\kaf[j]e]flYd[`Yf_]k af_]f\]j\an]jkalqY[jgkkZgYj\kYf\ZgYj\d]Y\]jk`ahjgd]k&@go]n]j$l`]jYl]Ylo`a[`oge]fYj]bgafaf_ZgYj\k YkYh]j[]flY_]g^f]oZgYj\e]eZ]jkÈo`a[``Y\Z]]fgfYfmhoYj\[daeZ^gjegj]l`YfY\][Y\]ÈYhh]Yjklg `Yn]hdYl]Ym]\gn]jl`]dYkll`j]]q]Yjk&L`Yl^Y[l$[geZaf]\oal`l`]gn]jYddkdgohY[]g^ZgYj\lmjfgn]j$]fkmj]k l`YlY[jala[YdeYkkg^_]f\]j\an]jkalqafl`]ZgYj\jggeoaddfglZ]j]Y[`]\afl`]f]Yjl]je& L`ak\g[me]flhjgna\]kYea\%q]Yjmh\Yl]lg=QÌk*()*j]hgjlGetting on board2oge]fbgafZgYj\kYl`a_`]j jYl]k$l`gm_`hjg_j]kk[ge]kkdgodq$[gehYjaf_ZgYj\[gehgkalagfg^KH)-(([gehYfa]kYll`]lae]g^l`] *()+YffmYde]]laf_ l`jgm_`+(Bmf]*()+!oal`l`]*()*Yf\*((.YffmYde]]laf_k&i

Incremental change continues

Hjgpq\ak[dgkmj]kk`gol`Ylo`]f\]k[jaZaf_l`]ZY[c_jgmf\kYf\imYdaÕ[Ylagfkg^\aj][lgjfgeaf]]k$ZgYj\k Yj]af[j]Ykaf_dq^g[mk]\gf\an]jkalqÈmkmYddqZjgY\dq\]Õf]\YknYjqaf_]ph]jlak]$]ph]ja]f[]$kcaddkk]lkYf\ na]ohgaflk&L`ak\ak[dgkmj][Yf`]dhafn]klgjkYhhj][aYl]`gogn]jYddZgYj\[gehgkalagfaklYadgj]\lgeYjc]l [`Ydd]f_]k$Zmkaf]kk[`YjY[l]jakla[kYf\kljYl]_a[_gYdk& @go]n]j$_jgol`af_]f\]j\an]jkalqÈY[jala[Yd[gehgf]flg^Y\an]jk]ZgYj\Èakkdgo&Oge]f`gd\)-g^ KH)-((ZgYj\k]Ylk$mh^jge),af*()*Yf\))af*((.&L`akak\]khal]dgf_%klYf\af_afn]klgj]^^gjlklg hjgegl][`Yf_]$o`a[`af*()+af[dm\]\Yd]ll]j%ojalaf_[YehYa_flYj_]laf_[gehYfa]koal`fgoge]fgfl`]aj ZgYj\kiiYf\k`Yj]`gd\]jhjghgkYdkk]]caf__j]Yl]j_]f\]jYf\'gj]l`fa[\an]jkalqgfZgYj\k$iii most of which o]j]oal`\jYofYk[gehYfa]kY_j]]\lgaf[gjhgjYl]\an]jkalqaflg\aj][lgj%k]Yj[`[jal]jaY&

Table 1: Women on US corporate boards *((.

2012

2013

),

)-

)/

)0

KH)-(([gehYfa]k H]j[]flY_]g^ZgYj\k]YlkÕdd]\Zqoge]f )) KH-(([gehYfa]k H]j[]flY_]g^ZgYj\k]YlkÕdd]\Zqoge]f ),

L`][geeale]fllg\an]jkalq[gflafm]klgZ]kljgf_]jYegf_dYj_]j[gehYfa]k$o`]j]1+g^KH-(([gehYfa]k `Yn]Yld]Yklgf]^]eYd]\aj][lgjgfl`]ajZgYj\$Yf\..`Yn]loggjegj]&L`ak[gehYj]koal`/1g^[gehYfa]k afl`]KH)-((oal`Yld]Yklgf]^]eYd]\aj][lgj$Yf\,*oal`loggjegj]&

Egj]l`Yf,(g^[gehYfa]kj]na]o]\Y\\]\Yld]Yklgf]^]eYd]\aj][lgjkaf[]*((.$Yf\g^l`]egj] l`Yf)$/((\aj][lgjk`ahk[mjj]fldq`]d\Zqoge]f$,,bgaf]\l`]ajj]kh][lan]ZgYj\kafl`]dYklÕn] q]Yjk&Kladd$egj]l`Yf*)g^KH)-(([gehYfa]k\gfgl`Yn]YogeYfk]jnaf_gfl`]ajZgYj\&

Table 2: Number of women on US corporate boards KH)-(( H]j[]flg^[gehYfa]koal`2

*((.

2012

KH-(( 2013

*((.

2012

2013

Fgoge]f\aj][lgjk

+-

*.

*)

),

)(

/

Gf]ogeYf\aj][lgj

+.

+.

+/

+1

*0

*/

Logoge]f\aj][lgjk

*)

*/

*1

+,

,*

,+

0

))

)+

)+

*(

*+

L`j]]gjegj]oge]f\aj][lgjk

Rate at which women are joining boards has plateaued

9Zgml*(g^f]oZgYj\e]eZ]jk]Y[`q]YjYj]oge]fÈYf\l`Yl`Ykj]eYaf]\YZgmll`]kYe] gn]jl`]dYkll`j]]q]Yjk^gddgoaf_Ykl]Y\qaf[j]Yk]gn]jl`]dYkl\][Y\]&9ll`]kYe]lae]$ l`]gn]jYddfmeZ]jg^\aj][lgjkbgafaf_ZgYj\k`Yk\][daf]\$j]kmdlaf_af^]o]jghhgjlmfala]k^gj oge]flg]fl]jl`]ZgYj\jgge& Af\]]\$l`]dY[cg^ZgYj\lmjfgn]jakaf[j]Ykaf_dqh]__]\Ykgf]g^l`]_j]Yl]klgZklY[d]klg af[j]Yk]\ZgYj\\an]jkalq&Kge]MKafn]klgjk_]f]jYddqYn]jk]lgimglYkYf\eYf\Ylgjql]je daealkYhh]YjlgZ]lYcaf_Y[dgk]jdggcYlkgdmlagfkl`Ylogmd\]f[gmjY_]ZgYj\j]^j]k`e]fl&

2 in 10 new directors are women In the last two years, 2 in 10 new directors among the S&P 1500 were women. The rate at which

=Qt9kkmjYf[]tLYptLjYfkY[lagfkt9\nakgjq About EY =QakY_dgZYdd]Y\]jafYkkmjYf[]$lYp$ ljYfkY[lagfYf\Y\nakgjqk]jna[]k&L`] afka_`lkYf\imYdalqk]jna[]ko]\]dan]j`]dh Zmad\ljmklYf\[gfÕ\]f[]afl`][YhalYd eYjc]lkYf\af][gfgea]kl`]ogjd\gn]j& O]\]n]dghgmlklYf\af_d]Y\]jko`gl]Ye lg\]dan]jgfgmjhjgeak]klgYddg^gmj klYc]`gd\]jk&Afkg\gaf_$o]hdYqY[jala[Yd jgd]afZmad\af_YZ]ll]jogjcaf_ogjd\ ^gjgmjh]ghd]$^gjgmj[da]flkYf\^gjgmj [geemfala]k& =Qj]^]jklgl`]_dgZYdgj_YfarYlagf$Yf\eYq j]^]jlggf]gjegj]$g^l`]e]eZ]jÕjekg^ =jfklQgmf_?dgZYdDaeal]\$]Y[`g^o`a[`ak Yk]hYjYl]d]_Yd]flalq&=jfklQgmf_?dgZYd Daeal]\$YMC[gehYfqdaeal]\Zq_mYjYfl]]$ \g]kfglhjgna\]k]jna[]klg[da]flk&>gjegj] af^gjeYlagfYZgmlgmjgj_YfarYlagf$hd]Yk] nakal]q&[ge& =jfklQgmf_DDHakY[da]fl%k]jnaf_ e]eZ]jÕjeg^=jfklQgmf_?dgZYdDaeal]\ gh]jYlaf_afl`]MK&

oge]fYj]bgafaf_MKZgYj\koaddfglka_faÔ[Yfldq strengthen board diversity in the short term.

Diversity begets diversity

L`]_j]Yl]klaf[j]Yk]kaf_]f\]j\an]jkalq[gflafm]lgg[[mjYegf_ZgYj\kl`YlYdj]Y\q`Yn]Yl d]Yklgf]^]eYd]\aj][lgjk]jnaf_&G^l`][gehYfa]kl`YlY\\]\Yld]Yklgf]^]eYd]\aj][lgjaf *()+$.+Ydj]Y\q`Y\Yld]Yklgf]ogeYfk]jnaf_af*()*$km__]klaf_l`YlZgYj\kl`Yl`Yn] ]ph]ja]f[]\_]f\]j\an]jkalqfgoj][g_far]l`]nYdm]Yf\aehY[ll`Yl\an]jkalq[Yf`Yn]gfZgYj\ l`afcaf_Yf\^mf[lagf& ;gfn]jk]dq$eYfqYdd%eYd]ZgYj\kYj]^Yadaf_lgj][jmaloge]f\aj][lgjk&F]Yjdq`Yd^ ,.!g^ ZgYj\koal`fg^]eYd]\aj][lgjkaf*((.\gfgl`Yn]Yfq^]eYd]\aj][lgjkaf*()+&

Reaching the tipping point

9keYddfmeZ]jg^[gehYfa]k -!`Yn]hYkk]\o`Ylkge][gfka\]jl`]lahhaf_hgaflÈo`]j]Yl d]Yklgf]%l`aj\g^l`]ZgYj\akj]hj]k]fl]\Zq^]eYd]\aj][lgjk&L`YlÌkmh^jge,af*()*&L`]k] [gehYfa]kj]hj]k]flYnYja]lqg^k][lgjk&Afl]j]klaf_dq$_gaf_Y_Yafkll`]dYj_]jlj]f\afZgYj\ \an]jkalq$YZgml.(g^l`]k]Yj]keYdd]j[gehYfa]kgmlka\]g^l`]KH-((&

About the EY Corporate Governance Center (EYCGC). L`]=Q;?;g^^]jkZYdYf[]\afka_`lkYf\\YlY% ja[`[gfl]flYf\YfYdqkakl`Yl^gkl]jYda_fe]fl Yf\Zja\_]k_YhkYegf_eYfY_]e]fl$ZgYj\k g^\aj][lgjkYf\afn]klgjkÈjYakaf_YoYj]f]kk$ [j]Ylaf_mf\]jklYf\af_Yf\k]jnaf_YkY [gf\malg^af^gjeYlagf&L`];]fl]jÌkafka_`lk Yf\[gfl]flYj]kmhhgjl]\l`jgm_`alk hjghja]lYjq[gjhgjYl]_gn]jfYf[]\YlYZYk]$ j]dYlagfk`ahkoal`gmlka\]_gn]jfYf[] gj_YfarYlagfkYf\gf_gaf_[gfn]jkYlagfk oal`e]eZ]jkg^l`]afn]klgjYf\_gn]jfYf[] [geemfalq& ]q&[ge'_gn]jfYf[]

Leadership positions held by women

O`ad]alakkladdjYj]^gjYogeYflgd]Y\Y[gehYfq$f]Yjdq-g^KH)-(([gehYfa]k`Yn]Y^]eYd] ;=G$mh^jgeYZgml,dYklq]Yj&AfY\\alagf$+g^af\]h]f\]flZgYj\[`YajhgkalagfkYj]`]d\Zq oge]f$l`gm_`af[j]Ykaf_dql`]qYj]Yhhgafl]\lgaf\]h]f\]fld]Y\gjhj]ka\af_\aj][lgjjgd]k&

Table 3: Board leadership positions held by women Oge]fk]jnaf_Yk2

2013*

;=G

,&.

Af\]h]f\]flZgYj\[`Yaj

+&(

Af\]h]f\]fld]Y\'hj]ka\af_\aj][lgj

/&*

*Proportion of all positions

Contact

Allie Monaco Jml`]j^gj\ Corporate Governance Center =jfklQgmf_DDH #)*(*+*//(*. Ydda]&jml`]j^gj\8]q&[ge

i

9dd\YlY^jge=Q;gjhgjYl]?gn]jfYf[]((-, )+(0%)))1,*)FQ =