Women on Boards: A move that pays off
Experts estimate that the scenario will change in favor of women by 2027 where 30% board seats will belong to businesswomen. This journey can be faster and be achieved by 2020 if following 2 mechanisms pop into action. Accelerated Conversion – Doubles the proportion of new board seats taken by women Accelerated Turnover – Turnover of existing board seats could increase making way for women Worldwide there have been small but significant steps to boost women representation at executive level. The new Canadian Prime Minister Justin Trudeau created country’s first cabinet with equal numbers of men and women. Malaysia and Germany have been marching ahead to achieve 30% women on boards by end of 2016. Norway, France and Spain having adopted the quota mandate, are already pioneering the women leadership trend with impressive numbers ranging between 35%-40%. US is steadily working on a national campaign called 2020, to attain modest goal of 20% women directors by 2020 (Source: Catalyst). Companies need to make conscious effort to boost performance through board diversity and ensuring female participation for executive roles. The investors, instead of waiting for quotas and mandates can put positive pressure on companies to have gender balanced boards. Lastly, governments should plan certain incentives for mixed executive boards, as they are known to generate higher productivity and return on assets that ultimately strengthen the global economy.
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