In its report, Glacial Change in Diversity at ASX 200 Companies, BlackRock found that although the percentage of non-executive women on boards was up to 17.8 per cent compared with 14.4 per cent from the year before, the speed of change was “at a glacial pace”.
“The notion that Australia’s capital market system, with a proud heritage of self-determination and self-regulation, may be subject to a prescriptive ‘quota’ system to compel greater representation of women on boards despite the obvious benefits diversity brings, would prove an embarrassment,” BlackRock stated.
Sadly, BlackRock also found that there was not much of an appetite among the Australian Securities Exchange (ASX) leaders to tackle this. Less than 50 per cent of companies disclosed the existence of programs designed to increase diversity at senior levels – the asset management firm added that this was “probably one of the most disappointing statistics revealed in the study”.
In addition to this, the firm found 65 per cent of their disclosures were just perfunctory, giving only the minimal standard of reporting of the company’s diversity strategies and obligations. BlackRock believed this was likely due to the fact the “gender diversity issue is not yet foremost in the minds of Australian company directors”.
Their survey also revealed some worrying statistics that hinted to a sexist bias in appointments. Their survey found that 80 per cent of the men appointed to ASX 200 company boards did not have previous experience as an ASX 200 board member. This contrasted starkly with women, where only 57 per cent did not have prior experience.
BlackRock called on business leaders to take a more active role in implementing strategies to increase gender diversity, or the government might force their hands.
“If boards of Australian listed companies do not self-regulate in the important area of diversity, the government will,” BlackRock stated.
“The ball is in the court of Australian business to improve the rate of change of diversity at both senior executive and board levels.”
