Although gender disparity in business leadership is still a huge issue, a recent study shows that the gap is beginning to close in some areas
The University of Queensland report found that the amount of women sitting on ASX200 boards has risen from 8.3% in 2008 to 33.6% in 2021.
This makes Australia one of three countries to crack the 30% threshold without any legislated quotas.
Key driving factors include the AICD’s board mentoring program, reporting on diversity and public campaigns
Dr Miriam Yates co-authored the study along with Dr Terrance Fitzsimmons and Professor Victor Callan.
She said more transparent reporting on diversity within the ASX Corporate Governance Council is a key driver behind the shift.
“We know from the research that formalised mentoring can be the catalyst for ‘opening the door’ to under-represented group members within the workplace,” she said.
The report also found that public campaigns from institutional investors, as well as the establishment of the 30% Club Australia helped drive the increase.
“In many ways, this change was cumulative, with each initiative building on the work of that which had come before,” Dr Yates said.
Source: Statistics are based on the Australian Institute of Company Directors research. Company rankings data provided by Market Index. Quarterly rebalance information provided by S&P.
However, the news wasn’t all positive
The researchers also found that a lack of affordable childcare and stereotyping have continued to act as barriers to women.
The report made a total of seven recommendations, including:
The establishment of a formal alliance of key influencers
The reinvigoration of board readiness and mentoring programs
The adoption of a 40/40/20 target for board gender parity. (40 per cent female, 40 per cent male, and 20 per cent either way)
The executive of Women on Boards Claire Braund described the news as encouraging. However, she also said growth hasn’t translated through to leadership positions.
“There is not really any significant trend for the number of female chairs or CEOs on ASX200 boards. Nor is there any uptick in the number of culturally diverse directors,” Braund said.
Currently, only one in ten blue chip company chairs is a woman.
“The worst sector for representation of women on ASX boards is the ASX200+ where the number of women effectively drops off a cliff.”
The report also highlighted this trend: “Australia’s continued improvement in board diversity sits in stark contrast to our diminishing position in terms of most other gender equality indicators, including gender diversity among top executives.”
“This phenomenon is replicated in countries where quotas on boards have led to the highest rates of female board participation; such as France, Sweden, and Germany. These markets also continue to see stubbornly low levels of female executives.”
Trend in the percentage of women ASX200 board members versus women ASX200 CEOs
The researchers traced the increase in the ASX boardroom gender diversity back to 2009
“The nation had its first female Prime Minister and Governor-General; we were in the grip of the Global Financial Crisis; and the media in many countries was highlighting the lack of diversity on company boards,” Dr Yates said.
AGEC chair Coral Ross said the report highlights important lessons as Australia works towards equity in other facets of society.
“The achievement of more than 30 per cent of women on boards is even more remarkable given Australia’s lack of progress in other gender equality measures,” she said.
A Selection of 2009 Board Gender Diversity Articles and ASX Featured in the Australian Financial Review
“It’s the mosaic of all the players that has enabled this change”
“What became apparent during the research was that there was no single institution or group of institutions that coordinated the changes and initiatives that led to the increase of women board members.”
“The systemic barriers to women’s progression in the workforce remain unaddressed and are responsible for a shrinking pipeline of women into leadership positions,” she said.
“A further identified barrier was the current board skills matrix, which favours CEO experience for board positions. When just 5 per cent of CEOs are women.”
Natasha is an Associate Producer at ticker NEWS with a Bachelor of arts from Monash University. She has previously worked at Sky News Australia and Monash University as an Online Content Producer.
Markets remain optimistic despite the escalating Israel-Iran conflict, raising concerns of potential complacency among investors.
In Short:
Market analysts warn that global investors are underestimating the conflict between Israel and Iran, despite resilient stock market gains. Analysts highlight the potential for prolonged conflict and significant impacts on energy markets, cautioning against complacency.
Global investors are currently underestimating the potential impact of the ongoing conflict between Israel and Iran, according to market analysts.
Despite four days of escalating fighting, which has resulted in significant casualties, global stock markets have shown resilience. Stocks in Europe, Asia-Pacific, and the U.S. have all seen gains, indicating a disconnect between market performance and geopolitical developments.
Investment director Russ Mould highlighted the risk of a broader conflict affecting energy markets. He noted that the situation is complex and the ramifications could extend beyond financial concerns.
Heightened risks
Strategist David Roche suggested the conflict may last longer than typical Israeli responses, posing heightened risks. Torbjorn Soltvedt from Verisk Maplecroft expressed that the current situation resembles an open-ended war, with severe implications for the region and global energy markets.
Energy prices have already reacted to the unrest, with crude oil experiencing significant price fluctuations. Analysts caution that a period of calm might lead markets to mistakenly believe in lasting peace, potentially creating buying opportunities in energy assets.
Conversely, some analysts, like Deutsche Bank’s Jim Reid, maintain a more cautious outlook, noting that retaliatory actions between Iran and Israel have yet to escalate dramatically. He indicated that historical patterns suggest a typical market recovery from such shocks.
Australia’s economy is slowing with 0.2% GDP growth; experts suggest interest rate cuts, prompting businesses to adapt for growth.
Australia’s economy is slowing fast, with GDP growth at just 0.2% and output per person in decline. Experts are now predicting steep interest rate cuts to avoid recession.
What can businesses do to adapt and grow in this climate? Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker
World Bank forecasts U.S. growth halving due to tariffs; global economy also faces significant slowdown, especially in exports.
In Short:
The World Bank has downgraded U.S. growth projections to 1.4% for 2025 due to President Trump’s tariff policies, warning that increased tariffs could worsen the global economic slowdown. The report highlights a decline in growth for multiple economies, with a particular emphasis on the negative impact on living standards and the need for negotiated trade barriers.
The World Bank has downgraded its growth projections for the U.S. economy, forecasting an increase of just 1.4% in 2025, down from the previous year’s 2.8%. This reduction is attributed to President Trump’s tariff policies, which are anticipated to hamper both U.S. and global growth.
The World Bank’s latest report highlights an expected slowdown in multiple economies, including the eurozone, Japan, and India. Mexico is projected to experience the most significant impact, with growth dropping to 0.2% from 1.5%.
Exacerbate the slowdown
Amid these forecasts, the World Bank warned that a further rise in tariffs could exacerbate the slowdown. If tariffs were raised by an additional 10 percentage points, global growth could plummet to 1.8% this year and 2% in 2026. Such an escalation would lead to reduced trade, declining confidence, and increased market turmoil.
Indermit Gill, the World Bank’s chief economist, noted that if a course correction is not made, the negative effects on living standards could be severe. The Organisation for Economic Cooperation and Development has also voiced concerns about the implications of tariffs, predicting a U.S. growth rate of 1.6% with inflation approaching 4%.