The joint report from the Governance Institute and Watermark Search International, which looked at 300 organisations and over 2,000 board seats, also found that the number of ASX 300 companies with one or no female directors has halved since 2016, with 633 women now occupying board seats.
The number of boards with at least 30 per cent women has also tripled from 54 in 2016 to 161 this year.
“On this current trajectory there will be no ASX 300 companies without a female director by 2026, and gender parity achieved in the boardroom by 2030,” Governance Institute chief executive Megan Motto said.
“These milestones, while well-overdue, will be truly momentous and we urge companies to ensure they keep up the positive action and strategies.”
However, the report noted that cultural change in boardrooms is not as positive as gender diversity, with 90 per cent of directors being of Anglo-Celtic or European background.
“The report highlights that Australian boardrooms remain dominated by those of Anglo-Celtic and European ethnicity,” Watermark Search International’s managing partner David Evans said.
“Based on current trends, it will take 18 years for the boardroom to be reflective of Australia’s cultural diversity.”
Ms Motto added: “We are seeing investors and other stakeholders increasing pressure on companies to be more reflective of the community within which they operate. Consumers are increasing the pressure, choosing to spend their dollars with diverse organisations which can demonstrate strong ethics and good culture.
“Internationally, we are seeing countries list diversity as a reportable benchmark for companies and firms are starting to link executive remuneration to diversity targets. Momentum is gathering and organisations really need to be on the ball.”
