BOSTON, Dec. 12 /PRNewswire/ -- The number of women directors and executive officers in Massachusetts' largest public companies fell in 2008, according to a recent report published by The Boston Club. In addition, the number of companies with no women in their boardroom or executive suites increased significantly. The number and percentage of women executive officers and the percentage of companies with a woman among their most highly compensated officers fell dramatically, to their lowest point since The Boston Club began tracking the data in 2003. Fewer women executive officers mean fewer women in the pipeline for board appointments, the women's business organization asserts. The report, "Succession Planning and Diversity: A Winning Combination in Troubled Times: The 2008 Census of Women Directors and Executive Officers of Massachusetts Public Companies is a joint project of The Boston Club, Bentley University and Mercer.

"This news is very disturbing," said Kathleen Stone, president of The Boston Club. The situation poses a huge challenge to the advancement of women to positions of corporate leadership, but also presents an opportunity. It's time for companies that have not made progress to follow the lead of other companies and enhance their own boardrooms and executive suites with gender diversity."

The change in composition of the 100 largest companies headquartered in Massachusetts has contributed to the low numbers. Since 2005, 26 companies dropped from the list because of merger or acquisition, decline in revenue, or relocation -- eleven of them in this past year alone. Based solely on the changed composition since last year, this year's Census reports a net loss of eight women directors, 17 women executive officers and six top compensated women. Because the number of women holding leadership positions is small, any loss in absolute numbers has an exponential impact on the percentages.

The Boston Club suggests that another reason for the low numbers of women in leadership positions is the absence of thoughtful succession planning by the boards of companies on the list. An analysis of the age and tenure of the directors of the Census companies shows that 19 companies had 26 independent directors over the age of 75, and at least 40 percent of the independent directors on nine boards had served for over 15 years, some for as long as 30 years. According to The Boston Club, better governance practices, including director evaluation and succession planning, will enable companies to add directors who have the diversity of background, experience, skills and perspective to address successfully the challenges of a global economy.

JoAnn Cavallaro, Chair of The Boston Club's Corporate Board Committee, notes, "Research shows that there is a correlation between gender diversity on boards of directors and among corporate executives and improved financial performance. We will step up our efforts to make that case to corporate leaders and executive search firms and to others who influence board decisions. Women can and do make important contributions to the strategic growth of the companies they serve. In these challenging economic times, now more than ever, corporate leaders must avail themselves of the best and brightest counsel available and that means appointing more qualified women. This is not just a socially or morally right thing to do. It is good business and it is good corporate governance."

About The Boston Club: The Boston Club is an influential community advancing women leaders offering connection, access and professional development. Created in 1976, The Boston Club is New England's largest organization of senior executive and professional women. The Club's key initiatives are increasing the participation of women on corporate and nonprofit boards; providing topical, provocative programs; and conducting research on issues affecting women in business. http://www.thebostonclub.com

SOURCE The Boston Club