Only 5 pc directors on boards of Indian companies are women
Very few women make it to the board of directors globally and India is no exception to the trend as a study says only five per cent of directors on boards of 1,500 Indian companies surveyed are women.
By PTI |
MUMBAI: Very few women make it to the board of directors globally and India is no exception to the trend as a study says only five per cent of directors on boards of 1,500 Indian companies surveyed are women.
Besides, only 26 per cent of these companies have women director(s).
Pamela Parizek, Partner, Forensic Advisory Services of KPMG speaking at a meeting on 'Women in Corporate Governance' said in the US in 2008 only 15 per cent of directors on the board of Fortune 500 companies were women.
According to a presentation made by her, the percentage of women directors in Norway is very high at 44.2 per cent out of six leading companies surveyed there. In Sweden also, of the 16 companies surveyed, the women board members accounted for 26.9 per cent.
However, in other developed countries, the picture was dismal with Canada reporting only 13 per cent women directors, Netherlands (12.3 per cent), UK (11.7 per cent) Australia (8.3 per cent) and Germany (7.8 per cent).
The number of companies surveyed were different in different countries.
In the US, in 2008, 71 of the Fortune 500 companies had at least 25 per cent or more women on the board.
According to the presentation, there is a co-relation between the performance of a company and the number of women directors on the board.
A study of Fortune 500 companies in 2007 found that financial performance of companies was far better than average where at least three directors on the board were women.
Arun Nanda, Executive Director of Mahindra & Mahindra who was guest speaker at the meeting observed that appointment of a director on the board of directors is made on merit and women should make it to the board on merit and not through reservation.
He pointed out that women are doing well here with some of the chiefs of large banks as also 2 deputy governors of the Reserve Bank of India being women.
A section of women who participated in the discussion said they are capable of being directors on the board but do not know how to approach the companies. There were suggestions like going through the head hunters or search firms or preparing a data base of capable women who can make it to the boards and circulating it among companies.
Besides, only 26 per cent of these companies have women director(s).
Pamela Parizek, Partner, Forensic Advisory Services of KPMG speaking at a meeting on 'Women in Corporate Governance' said in the US in 2008 only 15 per cent of directors on the board of Fortune 500 companies were women.
According to a presentation made by her, the percentage of women directors in Norway is very high at 44.2 per cent out of six leading companies surveyed there. In Sweden also, of the 16 companies surveyed, the women board members accounted for 26.9 per cent.
However, in other developed countries, the picture was dismal with Canada reporting only 13 per cent women directors, Netherlands (12.3 per cent), UK (11.7 per cent) Australia (8.3 per cent) and Germany (7.8 per cent).
The number of companies surveyed were different in different countries.
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In the US, in 2008, 71 of the Fortune 500 companies had at least 25 per cent or more women on the board.
According to the presentation, there is a co-relation between the performance of a company and the number of women directors on the board.
A study of Fortune 500 companies in 2007 found that financial performance of companies was far better than average where at least three directors on the board were women.
Arun Nanda, Executive Director of Mahindra & Mahindra who was guest speaker at the meeting observed that appointment of a director on the board of directors is made on merit and women should make it to the board on merit and not through reservation.
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He pointed out that women are doing well here with some of the chiefs of large banks as also 2 deputy governors of the Reserve Bank of India being women.
A section of women who participated in the discussion said they are capable of being directors on the board but do not know how to approach the companies. There were suggestions like going through the head hunters or search firms or preparing a data base of capable women who can make it to the boards and circulating it among companies.
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