The representation of women on corporate boards is on the rise, and it’s a positive trend. The European Parliament has set a target for at least 40% of non-executive directors at large firms to be women by 2026. In the UK, this target has already been achieved, and Japan has also set a goal to increase the percentage of female directors. While the US is not in favor of quotas, its markets regulator is pushing for firms to disclose diversity statistics, which could prompt action.
The Economist’s “glass-ceiling index” shows that this push for gender diversity is making an impact, with women’s share of directorships reaching an all-time high of 33% in 2023 across OECD countries. In some countries, such as France, New Zealand, and Norway, the percentage of female directors is close to 50%.
The case for more female representation on boards goes beyond morality, as studies have shown that firms with greater board gender diversity are more likely to outperform their industry average. Additionally, the appointment of a woman as a boss can positively impact a firm’s share price and price-to-earnings ratio.
2024-03-07 09:18:17
Source from www.economist.com