Why HP is pushing for boardroom equality

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Good morning. David Meyer here in Berlin, filling in for Alan.

As we head into a much-deserved weekend, I’d like to draw your attention to a couple of worthwhile reads.

The first is this LinkedIn post from HP CEO Enrique Lores, following an appearance before the California Senate yesterday by HP’s strategy chief, Kim Rivera. Rivera was there to express the company’s support for a state bill that would force firms to diversify their boards.

Here’s what Lores had to say on the matter:

“It’s an important piece of legislation. I urge the legislature to adopt it and Governor Newsom to sign it into law. But we shouldn’t have to rely on the Governor’s pen to make our boards more diverse. Business leaders should be doing that on our own.

“This isn’t just the right thing to do. Study after study has shown how gender and ethnic diversity can help power innovation and strengthen a company’s performance. For example, McKinsey has found that companies with more women and more ethnic diversity at the executive level are more profitable, and they’ve also found that companies with more diverse boardrooms enjoy significantly higher earnings and returns on equity.”

HP itself certainly walks the talk; as Lores noted in his post, its board is 58{4bae5313c1ffa697ce99995897f7847f1ebf3bca0fb7c37396bb602eb24323d3} minorities, and 42{4bae5313c1ffa697ce99995897f7847f1ebf3bca0fb7c37396bb602eb24323d3} women. “Yet, we also know we have a lot more work to do—as a company and industry—to finally shatter the barriers that have prevented true equality and fairness for far too long,” he wrote.

And speaking of McKinsey studies, here’s a new report from the consultancy on the outlook for corporate travel. It suggests business travel will take longer to recover than leisure travel will, and it’s crucial for travel players to understand which segments will return first.

According to McKinsey, the earliest revival for business travel will be for in-person sales and client meetings. Internal meetings, conferences and events won’t be significant drivers until “well into 2021” or later, while “some travel for internal purposes will be permanently replaced by virtual meetings and collaboration.”

More news below.

David Meyer

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