The number of female directors has effectively doubled in less than a decade, new data from the Australian Council of Superannuation Investors (ACSI) shows.
The rise in the number of female directors is a big milestone towards gender balance in the boardrooms of Australia’s listed companies.
In early 2015, when ACSI accelerated its campaign to improve board gender diversity, fewer than 20 per cent of ASX 200 directors were women.
Now, only 30 more appointments of women are needed to hit the target of 40 per cent representation. (This is, however, assuming that current male directors are swapped for women, rather than increasing board sizes without removing men).
ACSI calculates that the 30 per cent milestone was reached in June 2019. And in 2023, the appointment rate was the highest on record at 46.7 per cent.
It’s likely that, at the current rate of change, the historic 40 per cent target will be reached by the end of 2024, or in early 2025.
ACSI CEO Louise Davidson commended the 40 per cent target but said also that “meeting this target will not be the end of the battle”.
“There are still too many boards that lack meaningful gender diversity with the number of female directors below 40 per cent, or indeed without any women at all. This means they are missing out on a wider talent pool and more diverse skills.”
“The era of male-only boardrooms is ending,” said Davidson, adding that “board diversity improves governance standards and helps drive long-term value for shareholders.”
The ASX 20, ASX 50 and ASX 100 are all above the 40 per cent gender balance target.
“Ten years ago, when we started this campaign, I sat down to write to every company in the ASX200 with zero or one woman on the board,” said Davidson. “I was shocked to find that I had to sign 100 letters. Now, you can count that number on your hands.”
While all ASX 200 companies now have at least one woman on their board, it’s a different story in the ASX 201-300, where six companies still have male-only boards. And twenty-four ASX 300 companies have fewer than 30 per cent female directors.
In 2023 ACSI instituted a new voting policy supporting recommendations ‘against’ re-election of male directors in ASX300 companies in which women do not occupy a minimum of 30 per cent of board seats.
“Encouragingly, the data shows that we are seeing new faces and fresh talent joining Australian boards,” Davidson said. “Nearly half (15) of the 34 women appointed to ASX 200 boards this year are on their first board appointment and another nine are on their second board.”
“We need to do more to support women early in their board careers and encourage women towards board leadership to further lift the performance of Australian businesses, with benefits for all investors.”