WOMEN are being appointed to boards at unprecedented levels, as the Australian Securities and Stock Exchange's corporate governance recommendations on gender diversity kick in this financial year.
A report to be released today by the Australian Institute of Company Directors reveals that so far this year, women accounted for nearly 30 per cent of all new board appointments in ASX 200 companies, a 600 per cent increase on 2009 when women accounted for 7.5 per cent of appointments.
The data has been gathered by the report's author, senior policy adviser Anthea McIntyre, who has monitored ASX board and director announcements. While the issue is one of cultural change in managerial, executive and board recruitment, the available data is sparse.
"I can't tell you if there's been any movement in executive ranks, which is more critical," Ms McIntyre said, as boards look to executive ranks to fill board positions.
"I can tell you we've had fantastic progress at the boardroom level . . . in fact [it's] unprecedented around the world to have this change in the absence of quotas."
The institute points to the success of its chairmen's mentoring program, in which 80 leaders including John Schubert, John Morschel, Don Argus and Ziggy Switkowski have mentored and recruited from the ranks of women in the program.
Appointments include Ilana Atlas, (mentored by David Gonski) to the boards of Coca-Cola Amatil and Suncorp; Jacqueline Hey to Bendigo and Adelaide Bank; and Fiona Balfour (mentored by Bob Savage of David Jones) adding Tower Australia Group to her existing appointments. Michelle Tredenick was recruited to the Bank of Queensland board by her mentor, the bank's chairman Neil Summerson, and Nancy Milne, mentored by Caltex chairwoman Elizabeth Bryan, was appointed to Australand Property Group
Ms McIntyre said women comprised 4 per cent of line managers, 8 per cent of senior executives and 12.7 per cent of directors of Australia's top 200 companies. "This has raised questions as to whether companies and boards are in practice recruiting . . . solely on skills, experience and performance, without a gender bias."
Frequently Asked Questions about this Article…
What recent trend has been reported for women on ASX 200 boards?
A report from the Australian Institute of Company Directors finds women now account for nearly 30% of all new board appointments in ASX 200 companies this financial year, a large rise linked to the ASX corporate governance recommendations on gender diversity.
How big is the increase in female board appointments compared with 2009?
The report says this represents a roughly 600% increase on 2009, when women made up about 7.5% of new board appointments.
Which companies were highlighted as having new female board appointments?
Examples in the report include Ilana Atlas (appointed to Coca‑Cola Amatil and Suncorp), Jacqueline Hey (Bendigo and Adelaide Bank), Fiona Balfour (added Tower Australia Group), Michelle Tredenick (Bank of Queensland) and Nancy Milne (Australand Property Group).
What role did the Institute’s chairmen’s mentoring program play in increasing board diversity?
The Institute credits its chairmen’s mentoring program — which involved about 80 leaders such as John Schubert, Don Argus and Ziggy Switkowski — with mentoring and recruiting women into board roles, and says the program has been successful in boosting appointments.
Is the rise in female representation the same across management and executive ranks?
No. The report notes women comprise about 4% of line managers, 8% of senior executives and 12.7% of directors among Australia’s top 200 companies, indicating boardroom gains have outpaced progress in executive ranks.
Has this improvement in board diversity been driven by quotas?
According to the report’s author, the increase in women on boards is occurring in the absence of quotas — described as an unprecedented change around the world.
How complete is the data on gender diversity at executive level for investors to use?
The report’s author, Anthea McIntyre, notes the available data is sparse, and she cannot yet confirm whether there has been significant movement in executive ranks, which are critical to future board supply.
What should everyday investors take away from this report on gender diversity in ASX 200 companies?
Investors can note a clear governance trend: ASX corporate governance recommendations and mentoring initiatives have coincided with a marked increase in female board appointments, though progress is uneven below board level and data on executive ranks remains limited.
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