The number of women on boards in Australia has improved marginally over the past few years but new research shows that we are not doing too badly when it comes to board diversity compared to other countries in the region. In fact we’re holding onto the highest number of female directors in the Asia/Pacific region.
According to the latest Korn/Ferry board diversity study, The Diversity Scorecard 2013: Measuring Board Composition which surveyed 7,508 directors, holding a total of 8,521 directorships on boards of the 100 largest listed companies in nine markets: Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Singapore, and South Korea. Despite efforts to promote the number of women on boards in the region the figures remain low, with female directors making up just 10% of boards in participating countries, except for Australia, which currently has 16.7% of female directors.
More than half of the boards in five countries in the region — India, Japan, New Zealand, Singapore and South Korea — have no female board directors. Just six of the 900 boards examined have more than three female directors.
And according to the study, Australia has also shown the most progress across a number of other areas: The number of female directors, fewer all-male boards, more boards with multiple female directors, and more female directors holding leadership positions.
The study’s findings underscored an urgent need for the regions boards to embrace more diversity as markets across the region confront obstacles with increasing regional competition, consumer shifts, regulatory uncertainty, and in many areas a shortage of key talent.
Other key findings from the study reveal that female directors have shorter tenure than male directors and are on average, three years younger than male directors across all countries.
Female directors are also more likely to have had experience in the public or not-for-profit sector.
Compared to the inaugural Korn/Ferry board diversity study in 2011 of companies in seven Asia Pacific countries/regions — excluding Japan and South Korea, there were small signs of progress for gender inclusion: all countries except Hong Kong have increased the number of women on boards and the number of all-male boards has decreased in all countries except New Zealand, where there has been no change.
The study suggests that diversity will be an important factor in determining the future business leaders in Asia Pacific.
“Companies across the globe are starting to recognize that successful boards should reflect the markets they serve and that homogenous leadership teams will be less equipped to meet the challenges offast-changing markets,” Alicia Yi, Managing Director of Korn/Ferry’s Asia Pacific Consumer Market and member of the Firm’s Board & CEO Services Practice, said. “By ensuring sufficient diversity, high-performing boards can be assured that board decisions will be vigorously debated by individuals with different perspectives leading to improved board monitoring, better board meeting attendance rates, and causes boards to be more stakeholder focused.”