57% of boards are all male, says latest poll of 300
firms in S'pore
By Chia Yan Min
WOMEN
are still woefully under-represented on the boards of Singapore listed
companies, according to findings by a task force set up to address the issue.
As of April last year, only 8.3 per cent of
listed company directorships were held by women, a survey by the recently
formed Diversity Task Force found.
This was far fewer than in some other advanced
economies such as Australia at 17.3 per cent, and Britain at 19 per cent.
It was also fewer than in Asian economies such
as Malaysia at 8.7 per cent, China at 9 per cent and Hong Kong at 9.4 per cent.
Other studies in recent years had also found
female representation rates in Singapore languishing at around the current
level.
The latest survey, which polled 300 Singapore
listed companies, also found that 57 per cent of boards here were all male.
The Diversity Task Force was set up in 2012 in
response to concerns about female under-representation in top corporate
positions. It was initiated by Speaker of Parliament Halimah Yacob when she was
minister of state for the Ministry of Social and Family Development.
The task force, comprising private sector and
women's groups members, is expected to release a report and recommendations for
businesses and the Government by the end of next month.
Mrs Mildred Tan, chairman of the task force,
said companies can benefit from having a more diverse board. "With the
manpower shortage and an ageing population, tapping the under-utilised pool of
talented women in Singapore could give companies a competitive edge," said
Mrs Tan, who is also managing director of Ernst & Young Advisory.
Making board gender diversity a business
imperative will also help to build shareholder confidence, she added.
Without regulatory intervention, the task
force estimates that the percentage of women directors will grow to a mere 12
per cent in 2020 and 17 per cent in 2030, it said yesterday.
The survey findings showed companies are not
yet convinced of the benefits of a diverse board, and that few have taken
measures to tip the gender imbalance.
Only a third of companies polled agreed that
gender diversity at board level is important, and a mere 4 per cent said
shortlisted candidates for the board have to include at least one woman.
Factors contributing to the lack of board
gender diversity include a perceived lack of qualified female candidates, with
43 per cent of firms polled citing that as a stumbling block to appointing more
female board members.
Firms also rely excessively on personal
networks to recruit directors - 89 per cent of companies said they have used
this method, with 42 per cent recruiting only from their personal networks.
"The reality is that boards recruit based
on their network of acquaintances, and many board members tend to move in
circles that don't include professional women," said Mr Adrian Chan,
vice-chairman of the Singapore Institute of Directors.
Women also tend to be more reluctant than men
to take up board positions, the task force said.
"Women are less likely to put themselves
forward or are more likely to feel that they may not be adequately qualified
for a director or senior management role. Men are seen to be more assertive in
putting themselves forward, even if they do not meet all the requirements of a
role," it said.
The majority - 73 per cent - of companies
surveyed said there should not be a quota imposed on the number of female board
members, as directors should be hired based on merit.
Respondents preferred putting in place
measures to broaden the search and nomination process for potential board
candidates, and implementing initiatives to identify potential directors.
Companies should cast the net wider and hire
the best person for the job regardless of gender, said Mr Chan.
"There are definitely enough women
candidates out there - it is a matter of getting boards to be open-minded
enough to consider them," he said.
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