New findings show that US boards with above-average gender diversity achieve a staggering 256% higher annual Return on Equity (RoE) compared to less diverse boards.
The study from North Carolina A&T State University (N.C. A&T), which analysed 2018 to 2024 data for NYSE- and NASDAQ-listed companies, found that the average gender diversity across all public boards was only 24.59%, highlighting the untapped potential of inclusive leadership.
These findings validate the approach of e.l.f. Beauty’s Change the Board Game initiative, which promotes inclusivity in corporate governance as a proven driver of business performance.
THE POWER OF INCLUSION
e.l.f. Beauty has made boardroom diversity a central strategy. Its Board of Directors is 67% women and 44% racially or ethnically diverse, making it one of only five public companies in the US to reach this level of representation. The company credits its inclusive governance with contributing to 26 consecutive quarters of net sales growth and market-share gains.
“We’ve seen firsthand the power of inclusivity in our boardroom,” said Chairman and CEO Tarang Amin. “When diverse voices come to the table, especially voices that reflect the communities we serve, everyone wins. We’re proud of the diversity on our Board, and we don’t want e.l.f. Beauty to be one of only five public companies at this level.”
CHANGE THE BOARD GAME
The Change the Board Game coalition unites over 70 leaders and 20 organisations committed to expanding access to boardrooms and promoting inclusive governance. Partners include:
- Pink Chip – Unlocking women’s economic power through financial products.
- Latino Corporate Directors Association (LCDA) – Advocating for Latinx representation on boards.
- Black Corporate Board Readiness (BCBR) – Preparing Black executives for board service.
- 50/50 Women on Boards – Advancing gender parity in corporate leadership.
- Gaingels – Promoting equity and representation in venture capital.
“Collective action is essential to build better boards in service to shareholders, stakeholders, and society,” said Thane Kreiner, PhD, Co-Founder, BCBR.
Sam Rowlands, Founder and CEO of Pink Chip, added: “Joining the Change the Board Game coalition is an extension of our mission to shape a financial system where inclusion drives proven performance.”
DIVERSE REPRESENTATION ON BOARDS MATTER
Research and real-world examples show that diverse boards:
- Deliver stronger financial performance – N.C. A&T found that boards with above-average gender diversity achieved 256% higher RoE.
- Encourage innovation – Diverse perspectives enhance strategic decision-making.
- Reflect the market – Boards that mirror their customers’ demographics are better positioned to understand and serve them.
- Strengthen governance – Multiple perspectives lead to improved oversight and risk management.
e.l.f. Beauty invites companies, board members and organisations to join the Change the Board Game coalition. By working together, they aim to democratise access to boardrooms, advance qualified candidate representation and demonstrate that inclusive governance delivers measurable results.
For more information and resources, visit ChangeTheBoardGame.com.
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