Boardroom diversity valuable and rare – SEC's Aguilar

Strategists tell us that the source of competitive advantage comes from resources that are valuable and rare. When it comes to diversity in the boardroom, at least one member of the US Securities and Exchange Commission thinks this valuable resource should be a lot less rare. "It continues to amaze me that there remains a need to highlight the importance of diversity in the boardroom," Luis Aguilar told the SAIS Center for Transatlantic Relations. He cited a report from the California Public Employees' Retirement System, known as CalPERS, that found companies with diverse boards performed better than boards without. Companies without ethnic minorities and women on their boards "eventually may be at a competitive disadvantage and have an under-performing share value", he said. Aguilar, who came to the US as a six-year-old refugee from Cuba, has a rather personal interest in boardroom diversity. But he's interested in seeing diversity in more than just gender and ethnicity. "I firmly believe that if government agencies and the private sector mirrored the diversity of the general population, issues such as diversity in the boardroom, and other important issues such as financial literacy in minority communities, would be a natural focus."

Source document: The Aguilar speech elaborates on his thinking.