Women on Boards of Colorado Publicly Traded Companies

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1 Women on Boards of Colorado Publicly Traded Companies Analysis as of June 30, 2018 Prepared by Jo Lynne Whiting with support from Darren Royal

2 Only 13.5% of board seats within publicly-traded companies in Colorado are held by women in 2018.

3 Summary of Women on Colorado Public Boards Companies with women on their boards perform better Better profitability, faster earnings growth, less risk, fewer financial restatements and controversies Colorado is making slow progress From 7.7% in 2011 to 13.5% in 2018 less than 1 p.p. per year 41% of Colorado companies have all-male boards 23% of new board positions in 1H18 went to women Only 12.7% named executive officers are women so pipeline is sparse Colorado is lagging national averages 1.6 p.p. below national average for Fortune 1000 companies in rd out of 24 states for Fortune 1000 companies of states with 10 or more 1.6 p.p. below national average for Russell 3000 companies in 1H18 Colorado is committed to marked improvement Colorado CEOs and Board Members are committed to 50% improvement between 2015 and 2018 Colorado Legislative Resolution urges corporate boards to add women on boards by

4 Agenda 1. Why Women on Boards 2. Colorado Progress to Date 3. National Benchmarks 4. Actions Taken 5. Summary 4

5 Why women on boards? 1. Data argues good reasons to include women Global companies with more than 1 woman on board have 36% improvement on Return on Equity Fortune 500 companies with sustained representation of 3 or more women had 46% improvement on ROE than companies with 0 women 2. Women contribute to board performance Women not only exhibit strong effort norms, but also intensify the board s effort norms Better communication, contribute to cohesiveness, adept at strategy development, insight into female customers 3. Long term benefits of gender parity Improved corporate reputation 40% fewer financial restatements, fewer governance-related controversies Recruitment and retention of talented women employees who respect companies with women in executive and board leadership Source for improvement on ROE: The Credit Suisse Gender 3000: Women in Senior Management, Credit Suisse, 9/14. Study of 3,000 companies across 40 countries H for 36% improvement; Catalyst, 2011 for 46% improvement with 3 or more. Women on board. Source for 40% financial restatements: Female Board Presence and the Likelihood of Financial Restatement, the study is in the December 2012 issue of Accounting Horizons, published quarterly by the American Accounting Association. 5

6 Why women on boards? Source: MSCI ESG Research,

7 Colorado is making progress 6 p.p. improvement in 7 years... Less than 1 p.p. annually More companies have 3 or more women on board Newmont Mining has 5 women on their board and a woman board chair # Colorado Public Companies # with 3 or more women on boards # with 2 women on boards # Women Board Seats of CO Companies # Total Board Seats of CO Companies Average # Board Members % Women Board Seats 7.7% 9.5% 13.5% [1] data as of December 31, data as of June 30, data as of June 30, % of new board positions in 1H18 went to women 7

8 Dec -11 Jun -12 Dec -12 Jun -13 Dec -13 Jun -14 Dec -14 Jun -15 Dec -15 Jun -16 Dec -16 Jun -17 Dec -17 Jun -18 Colorado is making progress, especially in last year % Women on Boards of Colorado Publicly Traded Companies Progress in last year has accelerated

9 Colorado lags national averages Colorado R3000 is slow to increase 25 Russell 3000 % Women on Boards Colorado F1000 is closing the gap 25 Fortune 1000 % Women on Boards US R3000 CO R3000 US F1000 CO F1000 9

10 Colorado lags the national average All Sized Companies U. S. Colorado Difference 2018 na 13.5% na Smaller than Russell 3000 U. S. Colorado Difference 2017 Na 4.7% na 2018 na 7.0% na U.S. R3000 has 20% all male boards in 1Q18 CO R3000 has 29% all male boards in 2Q18 Fortune 1000 Companies U. S. Colorado Difference % 15.0% (2.9 p.p.) % 14.9% (3.9 p.p.) % 18.2% (1.6 p.p.) % Source for F1000 U.S.: 2020 Women on Boards, Gender Diversity Index, Colorado s mix of companies in F1000 has changed over time.. Russell 3000 Companies U. S. Colorado Difference % 15.1% (1.1 p.p.) % 15.3% (1.6 p.p.) Source for R3000 U.S.: Equilar CO 2017 R3000 has 31% all-male boards; U.S. has 21%. 10

11 Colorado Fortune 1000 companies lag most other states. Only Oklahoma is lower than Colorado Washington leads at 9 p.p. better than Colorado Source 2020 Women on Boards Gender Diversity Index, Progress of Women Corporate Directors by Company Size, State and Sector. The 16.3% differs from 18.2% in our end of 2017 census because some oil & gas companies fell off the F1000 list after this study published.

12 Women on Boards in U.S. lags Europe U.S. progress lags Global Quotas in Europe accelerated progress. UK improved 13 p.p. since 2010 without mandates. (30% Club) * Italy mandate for 1/3 new directors female beg ** France & Norway have mandatory req. of 40%. ***Colorado includes all-sized public companies which are somewhat smaller than the other data points for the 3,000 largest global companies. Women on Boards P.P. growth since 2010 Norway** 10 France** 18 Italy* 25 UK 13 U.S. 4 GLOBAL AVG. 5 Colorado*** 5 12

13 40% of Colorado companies have all-male boards % Colorado Publicly Traded Companies with # Women on their Boards Fortune 500 leads the way Over 40% have all-male boards Celebrate the 12% with 3 or more women on their boards 10 0 Fortune 500 F F1001-R3000 Very Small Grand Total 0 Woman 1 Woman 2 Women 3 or more Women 13

14 # Women Over one-fifth of Colorado companies have 2 or more women on their board. 10 companies have 3 or more women on boards 15 companies have 2 women on boards Research shows 3 or more women on a board significantly changes board culture by getting past tokenism and significantly improves corporate performance. Name 5Newmont Mining Corporation 4Red Robin Gourmet Burgers, Inc. 4Zayo Group Holdings, Inc. 4ANGI Homeservices 4RE/MAX Holdings, Inc. 3Viveve Medical 3Heska Corporation 3Apartment Investment and Management 3Vail Resorts, Inc. 3Ball Corporation 3DaVita Healthcare Partners 3United Dominion Realty Trust, Inc. 3CoBiz Financial Inc. 2Array BioPharma Inc. 2Gaia 2Gates Industrial 2Natural Grocers by Vitamin Cottage, Inc. 2CoreSite Realty Corporation 2SendGrid 2Arrow Electronics 2Guaranty Bancorp 2QEP Resources, Inc. 2WideOpen West 2Cimarex Energy Co 2Western Union Company (The) 2Qurate Retail 2Woodward, Inc. 2Envision Healthcare 2Molson Coors Brewing 14

15 Honors companies with 3 or more women on their board 15

16 Colorado Public Companies are not yet building a robust pipeline of women executive officers For the first time, Boardbound by Women s Leadership Foundation researched the % women as named executive officers in the proxies of Colorado public companies. Only 12.7% Women NEOs 62% Companies had all-male NEOs 16

17 The Women s Leadership Foundation works the Demand & Supply Side of the Equation with Advocacy to increase Women on Boards Demand by Corporations for Women to Strengthen their Boards Supply of Talented Women to Fill Strategic Needs on Corporate Boards Advocacy for Greater Gender Diversity Celebrating Steps Forward 17

18 The Women s Leadership Foundation works the Demand & Supply Side of the Equation Sources to Help Find Qualified Female Candidates Current Women Directors CEO-Sponsored Candidates Search Exchange Board Bound Program Corporate Community Awards to Companies with 3 or more women on their boards CEOs for Women on Boards Fortune 1000 Companies Medium & Small Companies CO Legislative Resolution Targeted Industries 18

19 Women s Leadership Foundation s database includes many talented, highly qualified candidates Audit Committee Financial Expert M&A IPOs Venture Capital Air Force General 19

20 What individuals can do to advance women on boards Get informed how many women on boards of companies you work for, buy from, invest in. Advocate most people are surprised such few women are on Colorado boards. Help raise awareness of the issue and rally widespread support. Join a Board Practice good governance on a non-profit board or city/state board or commission. Target a corporate board seat as part of your career plan. Consider the Women s Leadership Foundation Board Bound programs. Impact Investing with a Gender Lens Invest in women-owned, women-led companies and public companies where women are well represented in the C-Suite and on boards. Support Women s Leadership Foundation our vision is women in equal partnership with men at the highest level of leadership. Your support can increase our impact. 20

21 Colorado is committed to becoming a leader of women on boards.