16 December 2009
MEDIA RELEASE

25 per cent a feasible target by 2012

ASX200 companies should aim to achieve a minimum of 25 per cent female directors by 2012, according to leading advocacy group Women on Boards.

Ruth Medd, Chair of Women on Boards, said that while Women on Boards would like this number to be higher, 25 per cent is a modest target that should be achievable in three years.

A recent Women on Boards survey found that female participation on ASX200 boards is still stuck in the eight to nine per cent range (8.7 per cent), where it has been since data started to be collected in Australia.

To put it in numbers, there are 1,474 total directorship positions on ASX200 companies as at the end of 2009, of which 128 are filled by women.

"Based on these numbers we will require an additional 242 positions to be filled by women. Not an impossible ask.

There are 13 companies in the ASX200 that already exceed the 25 per cent target - including Pacific Brands which is the only company that has equal numbers of male and female directors.

A further 14 companies have two or more women but do not quite make the 25 per cent target as they have larger boards.

There are 106 companies in the ASX200 without a female director.

How to achieve the 25 per cent target

1.  Actively seek out women who are future directors
 

  • Establish arrangements to increase the pool of women candidates known to chairs and directors, so they become available for selection when opportunities arise.
  • Adopt an ‘active looking plan’ - rather than the ‘bumped into a mate’ approach.
  • 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.
  • Broaden your search beyond the traditional pool - for example consider the following areas from which female directors might be sourced:
    • CFO’s, COOs and experienced company secretary’s
    • CEOs and managing directors of mid-sized companies (more than 100 employees)
    • Heads of business units and subsidiaries of ASX200 companies
    • CEOs of large not for profit companies and local government entities
    • Former partners in service firms (close to 20 per cent of partners in accounting and law firms are women)

2.  Encourage and support women who are potential future directors

  • Invite women to events and activities that will assist them into the networks that matter (eg corporate boxes at sports events) and look after them.
  • Host an annual ‘emerging leaders’ event and invite external and company women.
  • Open subsidiary and joint venture directorships to a transparent/open process and earmark some of the directorships for women.
  • Support and encourage women to join a board as a part of their professional development.

3.  Ensure a transparent selection process

  • Advertise vacancies more widely and in sectors where women are more prevalent.
  • Broaden selection criteria beyond CEO experience and financial and legal skills.
  • Require at least one serious woman candidate to be present on every short list.

4.  Enhanced KPI reporting

  • Institute a top-level pay audit and report the results by gender as well as level.
  • Give additional focus by having at least one woman on the remuneration committee.
  • Add diversity indicators to senior management KPIs to ensure the issue gets traction. Suggested indicators are: 
    • Proportion of women in a company business unit at each level of employment
    • Pay levels and attrition rates of men and women in comparable positions
    • Remuneration of women top earners compared to male top earners

5. Look to the good performers

  • Consult the organizations, in particular large service firms, who have successfully addressed diversity as a business imperative. A starting point is the EOWA annual employers of choice.
  • Consult the chairs of ASX200 companies who have at least two women on their board.
    • Pacific Brands Limited, James MacKenzie
    • Aristocrat Leisure Limited, David Simpson
    • QBE Insurance Group Limited, John Cloney
    • Astro Japan Property Trust, Allan McDonald
    • Westpac Banking Corporation, Ted Evans
    • Perpetual Limited, Robert Savage
    • Coca-Cola Amatil Limited, David Gonski AC
    • Insurance Australia Group Limited, James Strong
    • Macquarie Group Limited, David Clarke
    • Billabong International Limited, Ted Kunkel
    • Computershare Limited, Christopher Morris
    • Spotless Group Limited, Peter Smedley
    • Tabcorp Holdings Limited, John Story

Contact

Ruth Medd 0419 407231 or ruth.medd@womenonboards.org.au
Claire Braund 0409 981781 or claire.braund@womenonboards.org.au