Catholic Family Campaign

Corporate Board Diversity

Posted on January 29th, 2006

A study was completed of diversity of board of directors. The winners in Board diversity are:

According to Chicage United, these four corporations are the bottom of the Fortune 100 barrel when it comes to diversity on their Board of Directors.

What’s that mean to the Investor?

According to the study:

Companies with diverse boards of directors had an average return on equity of 25%.

Companies with non-diverse boards had an average ROE of 9%.

The advice from TheStreet is simple: Buy the former. Sell the latter.