The Ontario Teachers’ Pension Plan wants all companies on the Toronto Stock Exchange to appoint a minimum of three female directors to the board and if not, they should be delisted.
In a letter to the Ontario Securities Commission (OSC), the pension fund noted that sanctions for non-compliance has resulted in changes in other countries.
“We have come to this conclusion based on the experiences in other jurisdictions that show that in the absence of sanctions for non-compliance there was little increase in the number of women on boards,” said the letter, which was signed by Wayne Kozun, Teachers’ vice-president, public equities.
“Only when sanctions, or the threat of sanctions, were introduced was there noticeable improvement.”
The pension fund also cited a study that showed having three or more women on a board means that female directors are treated as individuals each with their own opinions and personalities and are not considered to be representing the views of all women.
It also mentioned another study that showed Fortune 500 companies that had three or more women on their boards, in any four out of five years between 2004 and 2008, significantly outperformed those with zero women on the board.
Teachers’ sent the letter in response to the OSC’s request for comments on a proposal that would require TSX-listed companies to provide disclosure regarding women on boards and in senior management in Ontario.
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