New e.l.f. Beauty, A&T Data Connect Return on Equity to Boards’ Gender Diversity

EAST GREENSBORO, N.C. (Oct. 2, 2025) – As the conversation around corporate governance evolves, e.l.f. Beauty (NYSE: ELF), in collaboration with North Carolina Agricultural and Technical State University, is sharing new data that support its Change the Board Game initiative showing companies with greater gender diversity on their boards may be better positioned to deliver stronger financial returns.

The latest data show board composition across industries and connect the rise in female representation to corporate performance metrics like Return on Equity (ROE). Read the e.l.f. release at this link: https://investor.elfbeauty.com/stock-and-financial/press-releases/landing-news/2025/10-02-2025-050114134. 

“N.C. A&T researchers are proud to partner with e.l.f. Beauty on this study demonstrating the value of gender diverse perspectives in  boardrooms. It’s exciting to see that gender representation influence product and marketing attributes that positively impact the ROE for industry,” said Elimelda Moige Ongeri, Ph.D., dean of the university’s John R. and Kathy R. Hairston College of Health and Human Sciences.

An interdisciplinary team of N.C. A&T faculty has been working on this project,: Associate Dean for Academic and Faculty Affairs and Endowed Professor of Health Psychology Anna K. Lee, Ph.D., and Assistant Professor of Psychology Kalynda C. Smith, Ph.D., of the Hairston College; and Associate Professor and Chair of the Department of Business Information Systems Pankaj Chaudhary, Ph.D., and Assistant Professor of Business Information Systems Lavlin Agrawal, Ph.D., of the Willie A. Deese College of Business and Economics.

“This partnership with e.l.f. Beauty shows the transformative potential of connecting multidisciplinary academic research with industry,” said Joseph R. Huscroft Jr., Ph.D., associate professor and chair of the Deese College's Department of Marketing and Supply Chain Management. “Our faculty are helping shape the national conversation around governance and equity, and we’re proud to see N.C. A&T’s data science and business expertise making a real impact.”

The most striking insight from the data is the correlation between board gender diversity and ROE:

• While more women are being added to boards year over year, the pace of progress is slowing.
• Across all publicly listed companies (publicly traded companies with their primary exchange as NASDAQ and/or New York Stock Exchange), those with above-mean gender diversity (28.57%) delivered an average ROE of 3.0%, while those below the mean averaged -0.2%.

• Companies with above mean gender diversity on their boards as a whole have experienced better than market ROE and significantly better ROE than companies with below mean board diversity for five years in a row from 2019 to 2024.
• Companies with above mean gender diversity on their boards as a whole have experienced positive ROE each year for five years in a row, from 2019 to 2024.
• For the last five years, from 2019 to 2024, companies with below average gender diversity have underperformed the market in terms of ROE.
• In four of the last five years, from 2019 to 2024, companies with below mean gender diversity as a whole had negative ROE.

This consistent pattern across market segments suggests that board gender diversity may serve as a forward indicator of organizational performance.

The impact of board gender diversity varies by industry:

• Information Technology, Financials, and Energy show the most significant ROE differences, with more gender diverse boards leading to stronger ROE performance.
• Health Care, Real Estate, Consumer Discretionary, and Utilities reflect modest but still positive correlations.

These nuances highlight that while gender diversity alone doesn’t guarantee performance, it may be a key factor in a company’s broader success strategy, particularly in innovation-driven or highly regulated industries.

“At e.l.f. Beauty, we believe that representation drives results,” said Tarang Amin, Chairman and CEO of e.l.f. Beauty. “This data reinforces what we’ve seen firsthand — diverse leadership isn’t just the right thing to do; it’s a business imperative.”

Launched in 2024, Change the Board Game is mobilizing a movement to reshape what leadership looks like: championing board diversity as a catalyst for innovation, resilience and long-term growth.

“Real progress comes from embedding women in roles of influence — committee leadership, succession planning, and strategic decision-making,” said Kory Marchisotto, e.l.f. Beauty chief marketing officer. “This is about building a future where performance and representation go hand in hand. As the data shows, prioritizing diversity isn’t a nice-to-have. It’s a must-have for companies that want to lead in today’s fast-moving world.”

Change the Board Game is already moving the needle. With the second cohort of the National Association of Corporate Directors Board Diversity Accelerator Initiative underway, Change the Board Game is scaling its impact. These 20 leaders — across industries, geographies, and backgrounds — represent the next wave of board-ready talent that will help reshape the future of corporate governance.

New statistics from tracking efforts show:

• 10% of e.l.f. Beauty’s first cohort are actively in board conversations or have been seated on boards.
• 75 brands, nonprofits and executives have joined the Change the Board Game Coalition.

“N.C. A&T applauds e.l.f. Beauty for initiating this game-changing initiative that, in addition to analyzing existing data, includes mentoring of highly talented individuals to diversify corporate boards,” said Ongeri. “This collaboration further showcases the value of research partnerships between industry and academic institutions.”

To learn more, visit changetheboardgame.com.