Exec bonus link to increased women's roles

Women on Boards recommended tying chief executives' bonuses and key performance indicators (KPIs) to how successful they are in increasing the number of women in senior positions. The group says this would create clearer accountability for improving gender diversity at the top of companies.

A group of high-profile Australian executives known as Women on Boards compiled the gender diversity guidelines and called for the change. Graham Bradley, chairman of Stockland and HSBC Australia, publicly supported the recommendation, and Claire Braund, the group's executive director, helped compile the guidelines.

Advocates say tying KPIs and bonuses to measurable progress on senior female representation would drive accountability and focus executive efforts on closing the shortfall of women in middle to senior management. The guidelines are intended to move companies beyond hiring and training to actually increasing leadership representation.

Yes — the article notes companies are hiring, training and developing women 'from the ground up.' However, the executives behind the guidelines say those efforts have not been enough to stop the significant shortfall of women in middle to senior management.

Graham Bradley, the chairman of Stockland and HSBC Australia, said companies are hiring, training and developing women from the ground up but are failing to arrest the significant shortfall of women in middle to senior management.

According to Claire Braund, executive director of Women on Boards, the number of women in senior executive positions was actually decreasing, which is a key reason the group compiled and promoted the gender diversity guidelines.

The guidelines, compiled by Women on Boards, recommend concrete steps such as linking chief executives' bonuses and KPIs to their success in increasing the number of women in senior roles. The guidelines aim to tackle the persistent shortfall of women in middle and senior management.

Calls to link executive pay with gender diversity reflect a broader focus on corporate governance and leadership effectiveness. Everyday investors who care about governance, risk and long-term company performance may want to note which companies adopt such accountability measures when evaluating management and strategy.