According to the Australian Council of Superannuation Investors (ACSI), the number of female directors in Australia’s largest companies has effectively doubled since 2015, when fewer than 20 per cent of ASX 200 directors were women.
Now, gender balance within these boardrooms is in clear sight, the group has emphasised.
“The era of male-only boardrooms is ending, because board diversity improves governance standards and helps drive long-term value for shareholders,” ACSI chief executive Louise Davidson said.
This comes only five years after reaching 30 per cent representation; based on the current rate of change, ACSI expects the 40 per cent target will be reached by the end of 2024 or in early 2025.
“Ten years ago, when we started this campaign, I sat down to write to every company in the ASX 200 with zero or one woman on the board. I was shocked to find that I had to sign 100 letters. Now, you can count that number on your hands,” Davidson said.
“ACSI member superannuation funds have successfully pushed for greater gender diversity across the ASX and will continue this work, recognising that a broader range of voices at the decision-making table leads to better decision making and stronger results for investors.”
However, she conceded that there are still many boards that lack meaningful gender diversity with the number of female directors below 40 per cent, or some without any women at all.
“This means they are missing out on a wider talent pool and more diverse skills,” Davidson said.
ACSI clarified that it has been engaging with companies to set a time frame for reaching a balance of 40:40:20, comprising 40 per cent men and women, with the remaining 20 per cent unallocated to allow flexibility for board renewal.
While all ASX 200 companies now have at least one woman on their board, the industry body pointed to a different story for the ASX 201-300, where six companies still have male-only line-ups.
Meanwhile, 24 ASX 300 companies have fewer than 30 per cent female directors.
“Encouragingly, the data shows that we are seeing new faces and fresh talent joining Australian boards,” Davidson said.
Namely, 15 of the 34 women appointed to ASX 200 boards this year are on their first board appointment, and another nine are on their second board.
“We need to do more to support women early in their board careers and encourage women towards board leadership to further lift the performance of Australian businesses, with benefits for all investors.
“There are currently 13 ASX 200 boards with only one woman on them – I would hope to see improvement on that by next year,” Davidson said.
