Gonski wants more women on boards

DAVID GONSKI has used his first public appearance since his appointment as chairman of Australia's most powerful investment fund to call for greater openness in Australian corporate culture, and a greater diversity of board appointments in listed companies.

By InvestSMART · 15 Mar 2012

By InvestSMART ·
15 Mar 2012

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Speaking at an Australian Institute of Company Directors lunch in Perth yesterday, the incoming chairman of the $73 billion Future Fund, also one of the country's most influential company directors, called on Australian businesses to appoint more women to their boards.

He criticised Australian corporate culture for being too narrowly focused, saying too many corporate figures treat board appointments as a retirement plan, rather than as a profession.

"We need to broaden the base of the people on boards," he said. "We obviously need to draw from 100 per cent of the population - I don't know how we men got away with it for so long. To draw from 49 per cent of the population cannot possibly be as good as choosing the best from the whole 100 per cent."

His comments came as Australian Securities Exchange board yesterday began preparations to launch a search for a new chairman.

In taking on the Future Fund role, Mr Gonski will stand down as ASX chairman at the end of June.

While the markets operator will look outside its own pool of directors, former Sydney Futures Exchange chairman and ASX director Rick Holliday-Smith has already emerged as a potential successor.

Mr Holliday-Smith has headed up various capital markets businesses and is chairman of the state and federal government-owned utility Snowy Hydro and listed healthcare specialist Cochlear.

Mr Gonski will remain chairman of the Australian arm of investment bank Investec as well as Coca-Cola Amatil. He is also a director of Singapore Airlines, although that role is due to end in July.

- Separately, the nation's biggest online stockbroker, Commonwealth Securities, this week told clients it was now linked to the Chi-X trading platform. This means the broker will consider running orders over the rival exchange operator. Trading over Chi-X is limited to members of the top 200 ASX listed stocks.

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Frequently Asked Questions about this Article…

What did David Gonski say about women on Australian corporate boards?

David Gonski used his first public appearance as incoming Future Fund chairman to urge Australian businesses to appoint more women to their boards. He said boards should draw from 100% of the population rather than effectively excluding about 49% — arguing a narrower, male-dominated pool can’t be as good as choosing from the whole population.

Who is David Gonski and what new role is he taking?

David Gonski is a prominent company director who was appointed chairman of the Future Fund, the $73 billion Australian sovereign wealth fund. He will step down as Australian Securities Exchange (ASX) chairman at the end of June as he takes on the Future Fund role.

Why did Gonski criticise Australian corporate culture and board appointments?

Gonski criticised Australian corporate culture for being too narrowly focused and said too many board appointments are treated as retirement positions rather than professional roles. He emphasised the need to broaden the base of people on boards and to be more open in corporate culture.

What changes did the ASX begin after Gonski’s announcement?

After Gonski’s appointment to the Future Fund was announced, the ASX board began preparations to launch a search for a new chairman, since Gonski is due to stand down at the end of June.

Who has emerged as a potential successor to Gonski as ASX chairman?

Rick Holliday-Smith has emerged as a potential successor. He is a former Sydney Futures Exchange chairman and ASX director who currently chairs Snowy Hydro (a state and federal government-owned utility) and the listed healthcare specialist Cochlear.

Which company roles will Gonski continue to hold after joining the Future Fund?

According to the article, Gonski will remain chairman of the Australian arm of investment bank Investec and Coca-Cola Amatil. He is also a director of Singapore Airlines, although that role is due to end in July.

What did the article say about Commonwealth Securities and the Chi‑X trading platform?

The article reported that Commonwealth Securities, the nation’s biggest online stockbroker, told clients it is now linked to the Chi‑X trading platform. This means the broker will consider running orders over the rival exchange operator, although trading over Chi‑X is limited to members of the top 200 ASX‑listed stocks.

What should everyday investors take away from the article about board diversity and trading options?

The article highlights two investor-relevant themes: corporate governance and trading infrastructure. Gonski’s public call for more diverse, professionally treated boards underscores that board composition and openness are governance factors investors may want to watch. Separately, the Commonwealth Securities–Chi‑X link shows evolving trading routes that could affect how orders are executed for the top 200 ASX stocks. Both topics are useful to monitor when assessing companies and brokerage arrangements.