Canadians in the know are pointing up the benefits of valuing women and men equally in the corporate world.
One analyst who supplies high-level institutional investors with advice collected evidence that shows having women on boards pays off with higher stock price gains — averaging as much as 50% higher.
One CIBC equity strategists found women on boards may understand the end customer better or bring different leadership styles and perspectives to an organization.
Investors seem to agree and they also want equal pay for both sexes. In a recent online survey, the Responsible Investment Association asked Canadian investors if they believe men and women should receive equal pay for equal work — 92% agreed.
A majority, 55%, of the respondents said they'd be willing to sell their stakes in any company that doesn't pay people equally for the same work.
It may be the next evolution of responsible investing, like choosing green technology companies over so-called sin stocks, like tobacco companies. But investing in firms that pay employees equally isn't easy.
The Ontario Securities Commission doesn't have requirements specifically around pay equity in its regulations. Instead, it is focused on the push for companies to adopt policies on gender representation on corporate boards and in executive roles.
At the end of 2014, securities regulators across the country adopted "comply and explain" guidelines for reporting gender diversity on boards. The guidelines don't include firm targets, but companies are urged to comply with the guidelines — and must explain their policies if they don't.
Yet shareholders of Google-parent Alphabet, recently rejected a push for the company to disclose pay disparities between male and female employees.
One market watcher found that regulators, government and investors need to put pressure on companies to change for their own good. Because it will cost their bottom line in the long run if they don't, he says.
