A panel of experts has revealed an immediate way an ASX company can improve returns for its shareholders.
Speaking at a webinar on Tuesday, Ramsay Health Care Ltd (ASX: RHC) chief people officer Colleen Harris, Australian Council of Superannuation Investors chief Louise Davidson, and Chief Executive Women president Sam Mostyn called for ASX businesses to improve the gender balance in executive and board positions.
The discussion cited a study that showed a 10 percentage-point increase in female representation in top tier management positions boosted the market capitalisation of the company by 6.6%.
"S&P/ASX 200 Index (ASX: XJO) companies can lead the way and achieve better results for all their stakeholders by ensuring their leadership teams are balanced," said Mostyn.
"More diverse teams lead to stronger financial performance and safer company cultures. Risk is reduced and outcomes improved – a 40:40 vision of gender equality is a corporate responsibility right now."
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Only 10 CEOs in the ASX 200 are female
The discussion was hosted by the 40:40 initiative, which launched last year to drive Australian companies to a minimum of 40% of each gender on executive and board roles by 2030.
The panel heard that only 10 out of 200 companies in the ASX 200 have a female chief executive. And only 1 out of the 25 appointed last year was female.
Panel moderator and HESTA chief Debby Blakey said the low CEO rate was unsurprising considering only 25% of ASX 200 leadership positions were held by women.
"Those companies not looking closely enough at 50% of the population when identifying top talent risk missing out not only on the best people but also the long-term performance edge a more diverse and inclusive culture provides."
There was good news in that the number of female board members on the ASX 200 has increased from 11 to 24 from 2015 to now.
"We're very encouraged to see the number of women directors continuing to increase. But it's disappointing that the number of female chairs and CEOs continues to languish," said Davidson.
"Women's progression to executive leadership positions and CEO roles still has a long way to go, and it will take sustained effort for this to change."
'Time for waiting is over'
Ramsay Health's board has 3 female directors out of 8, which falls short of the 40% campaign. But Harris pointed out the company's record at the middle levels of its workforce.
"In Australia, 59% of our hospital and facility CEOs are women and 60% of our regional executives are women," she said.
"By supporting the 40:40 Vision initiative, we hope to encourage other ASX200 companies to achieve gender equality."
Blakey acknowledged executive talent management is a complex exercise, but felt the 40:40 campaign gave organisations enough wriggle room to meet the target.
"We want to see real, genuine change – not just additional layers of needless reporting and governance resulting in a tick-the-box exercise," she said.
"The time for waiting is over because we can't wait decades to see equal numbers of men and women in senior leadership."
