Unprecedented number of women joining boards

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.

By InvestSMART · 9 Aug 2011

By InvestSMART ·
9 Aug 2011

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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 real time data has been gathered by the report's author, senior policy adviser Anthea McIntyre, who has monitored all 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, a huge shift, in fact 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, where 80 leaders including the likes of 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, who adds 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.

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 for these roles based solely on skills, experience and performance, without a gender bias," she said.

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Frequently Asked Questions about this Article…

How many women are being appointed to ASX 200 boards this year?

According to a report from the Australian Institute of Company Directors (AICD), women made up nearly 30% of all new board appointments in ASX 200 companies so far this year — a big jump from 7.5% in 2009 (about a 600% increase).

What prompted the surge in women on ASX boards?

The article says the increase has coincided with the Australian Securities and Stock Exchange’s corporate governance recommendations on gender diversity taking effect this financial year, and with active monitoring and initiatives from the AICD.

Who collected the data on board appointments and gender diversity?

The real‑time data was gathered by AICD senior policy adviser Anthea McIntyre, who has monitored all ASX board and director announcements for the report.

Are quotas responsible for the rise in women on boards?

No — the AICD report describes the shift as unprecedented and happening in the absence of quotas, driven instead by cultural change and targeted programs such as mentoring.

Which companies have recently appointed women to their boards?

Examples cited in the article include Ilana Atlas being appointed to Coca‑Cola Amatil and Suncorp, Jacqueline Hey to Bendigo and Adelaide Bank, Fiona Balfour adding Tower Australia Group to her appointments, and Michelle Tredenick recruited to the Bank of Queensland board.

What role have mentoring programs played in increasing board diversity?

The AICD’s chairmen’s mentoring program is highlighted as successful: about 80 leaders, including David Gonski, John Schubert, John Morschel, Don Argus and Ziggy Switkowski, mentored and recruited women into ASX board roles.

Has gender diversity improved in executive ranks as well as on boards?

The report notes data is sparse and Ms McIntyre said she can’t confirm movement in executive ranks. Current figures in the article show women make up about 4% of line managers and 8% of senior executives in Australia’s top 200 companies, compared with 12.7% of directors.

What should everyday investors watch for when assessing corporate governance and gender diversity?

Investors can monitor ASX board and director announcements, review company disclosure against ASX corporate governance recommendations on gender diversity, and follow AICD reporting and mentoring initiatives to gauge how companies are changing their board recruitment and governance practices.