Glass ceiling still intact: Women hold just 20 pc of G20 board seats
SSE report highlights disparity in global corporate leadership as France sets the bar with 40 pc mandatory quota for women on boards.
What you need to know:
- A new survey by Sustainable Stock Exchanges (SSE) reveals that women hold an average of just 20.2 per cent of board seats in the top 100 companies listed on major G20 stock exchanges.
- Euronext Paris leads with 44.3 per cent female board representation, while only six out of 22 markets have mandatory minimum requirements for women on corporate boards.
- In contrast, Kenya has made significant progress, with women occupying 36 per cent of board seats and 37 per cent of C-suite roles, outperforming the global average.
A new survey report has shed light on the persistently low number of women serving on boards of listed companies across G20 stock exchanges. According to the latest policy brief by Sustainable Stock Exchanges (SSE), women occupy an average of 20.2 per cent of board seats in the top 100 companies listed on major G20 stock exchanges.
This comprehensive analysis of gender equality on the boards of the top 100 issuers by market capitalisation on each of the G20's major stock exchanges offers valuable insights into the state of gender equality in top positions within companies listed on their markets.
Among G20 stock exchanges, Euronext Paris leads the pack, with women holding 44.3 per cent of board seats in the top 100 listed companies. Notably, the Johannesburg Stock Exchange (JSE) in South Africa stands out as the only stock exchange from a developing country ranked above the G20 average in terms of female board representation.
In Asia, the Shenzhen Stock Exchange takes the lead with 17.3 per cent female board members, closely followed by India's BSE and NSE at 16.8 per cent. Across the Americas, Brazil's B3 exchange leads South American exchanges with 12.1 per cent of board seats held by women, while in North America, NYSE and TSX rank sixth and seventh overall, with 30.4 per cent and 30.2 per cent female board representation, respectively. Nasdaq follows at ninth place with 27.8 per cent, just above the G20 average.
The report highlights that six out of 22 markets have implemented rules requiring a mandatory minimum number of women on corporate boards, with France setting the highest requirement at 40 per cent.
Gender equality
However, progress in leadership positions remains slow, with women holding only 5.5 per cent of board chair positions across G20 markets. The Australian Stock Exchange leads in this category with 14 female board chairs among its top 100 companies, followed by Borsa Italiana with 13 and JSE with 11. Similarly, women occupy just 5.5 per cent of CEO positions within companies listed on G20 stock exchanges, with the Shenzhen Stock Exchange leading the way with 11 female CEOs among its top 100 issuers.
These findings underscore the importance of gender equality, one of the 17 Sustainable Development Goals (SDGs) agreed upon by UN member States. Stock exchanges and other capital market stakeholders play a crucial role in promoting this goal.
Board chairpersons
In contrast to the overall G20 picture, Kenya has made significant strides in board diversity and inclusion over the past nine years. The 2021 Board Diversity and Inclusion Survey revealed that Kenya's gender diversity in boardrooms stands at 36per cent, up from 21per cent in 2017. Women constitute 21 per cent of appointed board chairpersons in Kenya, compared to the global average of 3per cent. Female representation in C-suite roles in Kenya is also impressive at 37 per cent, compared to 21 per cent globally. Additionally, the average age of Kenyan board members has decreased from 55.8 years in 2017 to 47.6 years.
Kenya's progress is not a recent phenomenon. A 2015 report by the Africa Development Bank ranked Kenya first in Africa for women on boards at 19.8per cent. The 2017 Board Diversity and Inclusion Survey by the Kenya Institute of Management (KIM) and the Nairobi Securities Exchange (NSE) reported 21per cent female board representation, up from 12 per cent in 2012.
To further boost women's representation, several initiatives are underway. The Kenya Private Sector Alliance (Kepsa) plans to require its members to adopt policies enhancing gender inclusivity in the workplace through its Private Sector Gender Mainstreaming policy.
Additionally, the Women Corporate Directors' (WCD)-Kenya Chapter has launched an initiative to increase the number of women on various boards in the country. WCD-Kenya chairperson Rose Mambo announced the creation of a database of qualified women to be linked with local and international board positions.
As these efforts continue, the focus remains on improving gender diversity and inclusion in corporate leadership across G20 countries and beyond. The disparities highlighted in the SSE report serve as a call to action for countries and companies lagging behind, while success stories like Kenya's provide a roadmap for progress.
The coming years will be crucial in determining whether the global business community can accelerate the pace of change and achieve meaningful gender equality in corporate boardrooms.
