Deloitte Global’s new report Women in the Boardroom: A Global Perspective uncovers that women fill less than a quarter (23.3%) of the global board seats. Despite a slight increase, the report predicts gender parity on board will not be achieved until 2038.
- Government actions are making a difference. Five out of the six countries with the highest proportion of women on boards have quota legislation, ranging from around 33% (Belgium and the Netherlands) to 40% (France, Norway, and Italy). The new EU Women on Boards Directive, demanding that all listed companies increase their female representation in the boardroom to over 40%, will further accelerate the progress. Additionally, other initiatives such as pay transparency and disclosures in other countries may have contributed to increased representation. (New Zealand is the sixth country but does not have a quota).
- However, not so much in the U.S. In 2022, a court overruled a law that mandated publicly traded corporations, headquartered in California, to include at least one woman on their boards.
- Steady progress in Southeast Asia. The report shows that Southeast Asia is making headway with an increased proportion of board seats held by women – from 17.1% in 2021 to 19.9% in 2023, a 2.8 percentage point rise – a positive sign from (result of?) social and political reinforcement.
- The glass ceiling persists in Chair and CEO roles. Globally, only 8.4% of women chair boards. In Southeast Asia, the average is a mere 7.4%. Additionally, executive roles see an even steeper decline in women's representation: only 6% of global CEOs are women, a slight 1% increase from 2022. At this pace, global CEO parity won't occur until 2111 – nearly 90 years from now.
Actions that members can take: The preference for board members with CEO experience doesn't bode well for increasing the number of women on boards. Companies need to broaden their skill requirements to diversify their boards further, address crucial skill gaps, and foster the growth of future women leaders to ensure sustainable progress.
