Looming issue for ASX rules on gender reporting
JOINT MEDIA RELEASE
Chartered Secretaries Australia and Women on Boards
9 August 2010
More than 60 percent of ASX company boards have not discussed how they would comply with the changes to Principle 3 of the ASX Corporate Governance Council’s (ASXCGC) Corporate Governance Principles and Recommendations (Principles) on diversity, a new survey has revealed.
The survey conducted by Chartered Secretaries Australia (CSA), indicated that while 86 per cent of companies were aware of the impending changes, less than 40 per cent of boards had discussed how their company might meet new reporting requirements which will commence on 1 January 2011.
Peter Turnbull, president of CSA, said the findings highlighted an important need for practical guidance to be provided to ASX companies on how to diversify their boards and senior leadership teams.
“This is particularly the case for smaller (ASX500+) companies, who are concerned that their size and historical structures will affect their capacity to diversify their boards and senior management – and are in many cases reluctant at having to do so.”
To assist companies with this process, CSA has partnered with Women on Boards (WOB) in the provision of new joint guidelines to ensure ASX-listed entities can comply with the changes and to develop gender diversity strategies.
CSA and WOB will host an educational forum in Sydney on 9 September 2010 to discuss how companies can diversity their boards and senior management teams.
“Developing gender diversity policies should be a priority for companies, particularly those listed on the ASX, in order to meet the January 2011 deadline,” Mr Turnbull said.
“Substantial work needs to be undertaken by companies before they are required to report back to shareholders on their progress of achieving measurable gender diversity objectives The guidelines we have created will go a long way in assisting companies develop and implement gender diversity strategies.”
Claire Braund, Executive Director of WOB, said she welcomed the opportunity to work with CSA, whose members would in many cases be preparing the reports for the ASX.
“At the moment half of the company secretaries in the ASX200 would have to report they did not have one woman on their board – and these companies are better informed and resourced than those further down the ASX.”
“Providing guidelines and strategies on how ASX companies can not only report on gender, but improve their statistics over time, is the type of practical and outcome oriented approach Women on Boards supports,” she said.
Ms Braund said CSA members were welcome to access the WOB director recruitment service to assist their companies to become more gender diverse.
Under its joint guidelines WOB and CSA support all of the recommendations issued by the ASXCGC and offer the following strategies as some examples that ASX listed entities seeking to comply with the Principles to increase the percentage of women on their boards and in senior management and executive roles.
- Set targets for gender diversity at board and senior management/executive level
- Seek input from other sources and require search consultants to provide a list of emerging women directors and emerging senior executives as part of any recruitment process
- Establish arrangements to increase the pool of women candidates known to chairs and directors, so they become available for selection when opportunities arise.
- Add diversity indicators to senior management KPIs to ensure the issue gets traction.
For details on the framework go to www.womenonboards.org.au/diversity/index.htm
Key survey findings
- 60 percent of companies surveyed reported their board had not discussed how they would comply with the guidelines.
- 22 of the 23 ASX500+ companies who responded had not discussed how they might meet the requirements.
- 47 per cent of companies would support a CSA WOB project to assist them meet the ASX Corporate Governance Council's guidelines.
- 40 per cent would attend a forum on the issue.
About the Survey
- The survey was conducted by the Chartered Secretaries Association and Women on Boards between 12 July and 21 July
- It was distributed to 595 ASX Listed companies with a 12% response rate.
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For more information or to organise an interview:
Claire Braund (WOB)
P: 024369 6006
M: 0409 981781
E: claire.braund@womenonboards.org.au
Tim Sheehy (CSA)
Sarah-Jane Stevenson
Reputation Pty Ltd
P: (02) 8252 7005 or 0432 067 655
E: sjstevenson@reputation.net.au
About Chartered Secretaries Australia
Chartered Secretaries Australia (CSA) is the independent leader in governance, risk and compliance. As the peak professional body delivering accredited education and the most practical and authoritative training and information in the field, it is focused on improving organisational performance and transparency.
