According to a new report by Credit Suisse, though improved, women’s representation in boardrooms has increased only by 4.3 percent from 2014 to 2019 in India. The current female representation on boards is only 15.2 percent, which is alarming. This report follows the revelation that 51 of the top 500 companies in India failed to get independent women directors in April, adding more fuel to the dialogue on lack of gender diversity in upper echelons of corporate companies.
With 15.2 percent in 2019, India’s female representation on boards has been ranked at the 23rd place out of 56 countries.
The Credit Suisse (CS) Gender 3000 report provides unique research on the gender diversity mix within the leadership teams of over 3,000 companies across 56 countries. Initially, the report was meant to focus on the impact of the increasing number of women on board, but later, it went on to focus on other factors related to women’s participation in the workforce as well.
Key Takeaways from the report:
- Family Owned companies with at least 10 percent of women executives have outperformed male-only companies by around 410 basis points per year, since 2014.
- The report also shows that the gender pay gap is prevalent across almost all companies in all countries, and is present as a result of well-established gender bias in society.
- With 15.2 percent in 2019, India’s female representation on boards has been ranked at 23rd place out of 56 countries.
- Women’s participation on boards in India rose by a meagre 4.3 percentage points in 2019, it is still below the global average of 20.6 percent.
- As per 2018, Female labour force participation fell from 36.7 percent in 2005 to 26 percent in 2018.
- India also ranks the third-lowest in the Asia Pacific region with only two percent Women CEOs.
- India also stands second-lowest in the Asia Pacific region for only one percent representation of women on the post-Chief Financial Officers (CFOs).
Only A Slight Improvement In Representation Of Women On Board In India
“India saw a slight improvement in female representation in senior management of 1.6 percentage points over the past three years, rising from 6.9% in 2016 to 8.5% in 2019, based on the matched data set. However, the country holds the third-lowest spot in APAC, ahead of South Korea (4%) and Japan (3%),” CSRI report said.
The report also puts forth that barely 5 percent of the CS Gender 3000 companies have female CEOs, and less than 15 percent female CFOs. Only a third of all shared services are held by women.
Singapore and Italy ranked the highest in terms of female CEO representation globally, constituting 15 percent of women CEOs. Regionally, North America (21 percent) and APAC (19 percent) reflect greater management diversity than Europe (17 percent).
Gender Diversity In Boardroom Across The Globe Has Doubled This Decade
According to the report, gender diversity in boardrooms has increased to 20 percent, which means it has nearly doubled this decade. This is, undoubtedly, a positive sign. However, the report also puts forth that barely 5 percent of the CS Gender 3000 companies have female CEOs, and less than 15 percent female CFOs. Only a third of all shared services are held by women.