Bill Text: IL HR0439 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Encourages equitable and diverse gender representation on corporate boards of directors and urges that, within the next 3 years, publicly held corporations in Illinois have specified minimum numbers of women on their boards.

Sponsorship: Moderate Partisan Bill (Democrat 31-8)

Status: (Passed) 2015-05-30 - Resolution Adopted [HR0439 Detail]

Download: Illinois-2015-HR0439-Introduced.html

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HOUSE RESOLUTION
WHEREAS, A McKinsey and Company study entitled "Women
Matter" showed that companies where women are most strongly
represented at board or top-management levels are also the
companies that perform the best; companies with 3 or more women
in senior management functions score more highly, on average,
on the organizational performance profile than companies with
no women at the top, and performance increases significantly
once a certain critical mass is attained -- specifically, when
there are at least 3 women on management committees with an
average membership of 10 people; and
WHEREAS, An Oklahoma State University study found that
board diversity, including diversity with respect to gender and
ethnicity, is associated with improved financial value; the
study also found a significant positive relationship between
the fraction of women or minorities on the board and firm
value; and
WHEREAS, A report entitled "Women Directors on Corporate
Boards" found that gender diversity on corporate boards
contributes to more effective corporate governance and to
positive governance outcomes through a variety of board
processes as well as through individual interactions; that
women directors contribute to important firm-level outcomes as

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they play direct roles as leaders and mentors, as well as
indirect roles as symbols of opportunity for other women, and
inspire those women to achieve and stay with their firms; and
that more recognition is needed for the valuable contribution
of women directors to firm value; and
WHEREAS, Credit Suisse conducted a 6-year global research
study, commencing in 2006, of more than 2,000 companies
worldwide that showed that women on boards improve business
performance by key metrics, including stock performance, as
demonstrated by the fact that companies with a market
capitalization of more than $10 billion, whose boards have
women, outperformed shares of comparable businesses with
all-male boards by 26%; and
WHEREAS, The Credit Suisse report included the following
findings: (1) there has been a greater correlation between
stock performance and the presence of women on a board since
the financial crisis in 2008; (2) companies with women on their
boards significantly outperformed others when the recession
occurred; (3) companies with women on their boards tend to be
somewhat risk-averse and carry less debt, on average; and (4)
net income growth for companies with women on their boards
averaged 14% over a 6-year period, compared with 10% for those
with no women directors; and

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WHEREAS, According to the study entitled "Women Directors
on Corporate Boards: From Tokenism to Critical Mass" and a
report entitled, "Critical Mass on Corporate Boards: Why Three
or More Women Enhance Governance", attaining critical mass,
going from one or 2 women directors to at least 3 women
directors, creates an environment where women are no longer
seen as outsiders and are able to influence the content and
process of board discussions more substantially, and boards of
directors need to have at least 3 women to enable them to
interact and exercise an influence on the working style,
processes, and tasks of the board, in turn positively affecting
the level of organizational innovation within the firm; and
WHEREAS, The State of Illinois has seen a slight uptick in
the percentage of women on corporate boards; in 2013, 17.5% of
the corporate boards in the State included women, and in 2014,
that percentage rose to 17.7; therefore, be it
RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE
NINETY-NINTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we
acknowledge that the body of evidence to date concludes that
companies perform better when their boards of directors and
executive leadership include women and that the State of
Illinois has a significant stake in protecting the shareholders
of publicly held companies as well as in setting policies that
enable such companies to perform better; and be it further

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RESOLVED, That we encourage equitable and diverse gender
representation on corporate boards of directors and urge that,
within the next 3 years: (1) every publicly held corporation in
Illinois with 9 or more seats on its board of directors have a
minimum of 3 women on its board; (2) every publicly held
corporation in Illinois with at least 5 but fewer than 9 seats
on its board of directors have a minimum of 2 women on its
board; and (3) every publicly held corporation in Illinois with
fewer than 5 seats on its board of directors have a minimum of
one woman on its board; and be it further
RESOLVED, That a suitable copy of this resolution be
presented to Judi Spaletto, Ph.D., Chicago Chapter Chair of
WOB2020.