Slow progress for boardroom diversity
Progress on gender diversity is steady, but slow according to the latest Global Board Diversity Analysis by leadership advisory group Egon Zehnder.
Progress on gender diversity is steady, but slow according to the latest Global Board Diversity Analysis by leadership advisory group Egon Zehnder.
Gender diversity progress in corporate boardrooms over the past two years is positive overall, but their composition still doesn’t reflect the versatility of thought, gender, age, nationality or perspective of the global stakeholders that businesses serve, reports Egon Zehnder.
The firm, a global leadership advisory specialist for more than 50 years, has released its 2016 Global Board Diversity Analysis. The bi-annual study, issued since 2004, examines board data for 1,491 of the world’s largest companies across 44 countries globally with market capitalisation exceeding €6bn.
“A modern organisation is only as successful as its leadership’s ability to navigate a near-constant state of change, and the momentum for achieving gender parity is simply not occurring at the pace of progress required,” said Rajeev Vasudeva, chief executive officer (CEO), Egon Zehnder.
“[The study] reinforces that we must continue to accelerate efforts to broaden opportunities at the highest levels of leadership for women, requiring we rethink what great leadership entails. Leaders today must pave the way for diversity to become the next disruptive force in business, embracing diversity as a fundamental and reimagining it for the long-term benefit of organisations.”
The message from the 2016 analysis is that gender parity in the boardroom continues an upward trajectory globally, with slow but positive progress. The report explores why some countries are able to transform their boards to better represent the society around them, and reveals continuing challenges in gaining parity in the boardroom.
Key findings include:
Pipeline progress for increasing female presence in the boardroom is weak, however:
Of the 44 countries studied, 16 “diversity champion countries” worldwide have achieved the critical mass of three female board directors on average: Italy, France, Belgium, Sweden, Germany, Austria, Spain, the UK, Netherlands, Republic of Ireland, Canada, Denmark, Poland, Finland, Norway, and South Africa. Nine of the top 10 countries in terms of board diversity progress over the period 2012 to 2016 were in Western Europe.
However, the US is relatively stagnant, with just 1% growth in board diversity from 19% in 2012 to 20% in 2016. The country has also fallen short of the three-female member tipping point with 2.1 women per board.
Eleven of the 44 countries studied are slow to progress on board diversity, where at least half of the boards are without a single female representative: Czech Republic, Argentina, Taiwan, Saudi Arabia, Brazil, Russia, Colombia, Hungary, Japan, South Korea, and United Arab Emirates (UAE).
The study also found that men held 95% of board chair roles in 2016, down slightly from 96% in 2014.