2012/02/06 09:35
- Over 70 percent of boards across Asia have no independent
women directors
- Demographic characteristics of female directors found to be
markedly different from male directors
SINGAPORE, Feb. 6, 2012 /PRNewswire-Asia/ -- Findings in an
inaugural board diversity study by Korn/Ferry International, The
Diversity Scorecard: Measuring Board Composition in Asia Pacific,
has found that female representation on boards of directors in the
Asia Pacific region remains low and that female directors have
different demographic characteristics compared to male
directors.
The study's findings underscore an urgent need for Asia's boards to
recruit more diverse directors, especially now when so many
companies are at a turning point in the global economy. More than
70 percent of boards in five countries -- Hong Kong, India,
Malaysia, New Zealand and Singapore -- have no female independent
directors. Boards with two or more female directors were rare,
while boards with three or more female independent directors were
almost non-existent.
The study, the first in Asia Pacific focusing on board diversity,
covers the largest 100 domestic companies by market capitalization
in Australia, mainland China, Hong Kong, India, Malaysia, New
Zealand, and Singapore. The study compares the extent to which
female and male directors hold key leadership positions on boards,
as well as the profiles of female and male directors in these
countries. A total of 6,538 directors holding a total of 5,793
directorships in these companies were included in the study.
The study was conducted in partnership with Associate Professor Mak
Yuen Teen of the NUS Business School at the National University of
Singapore, who is a recognized authority on corporate governance in
Asia.
"As Asia's growth trajectory propels it to a central spot in the
global economy, the most effective boards will be the ones that are
international -- with functional, sector and gender diversity,"
said Alicia Yi, managing director, Global Consumer Market of
Korn/Ferry Asia Pacific, and member of the Board & CEO Services
Practice.
"The world is taking notice of the potential and power of women --
as consumers, as leaders, and as a growing majority of the talent
pool. Companies have started to recognize that successful boards
should reflect the markets they serve and that homogenous
leadership teams can be less equipped to do business in an
increasing complex business environment," she added.
The study also found a key number of differences between the
demographic characteristics of female and male directors,
including:
-- Female directors are younger than male directors across all
countries, by about three years on average.
-- Female directors were more likely than male directors to have
law or accounting educational backgrounds, while male directors
were more likely to have engineering and science backgrounds.
-- The average tenure of female independent directors is shorter
than male directors across all countries.
-- Female directors are more likely than male directors to have
public sector or not-for-profit sector experience.
-- Female directors are generally underrepresented in board
leadership positions such as board chairs and board committee
chairs.
Other aspects of diversity revealed that:
-- On average, China had the youngest directors.
-- Hong Kong companies, followed closely by China companies, are
most likely to have directors from two or more generations.
-- The majority of boards, other than those in Malaysia and
Singapore, come from a single ethnic group.
"A lot of leading companies are now taking diversity, including
gender diversity, issues quite seriously -- setting employee
targets, tracking and looking for ways to improve -- as increasing
evidence suggests that more diverse boards and management teams can
be more effective and linked to better corporate performance," said
Yi.
"I have no doubt that the diversity issue will accelerate in years
to come. Only by having a diverse pool of independent, talented,
and committed directors will companies be able to connect with and
capitalize on the engine of Asia's consumption. Investors are also
demanding diverse boards to promote good governance and
sustainability and better navigate uncertain and challenging global
economies," she added.
An electronic version of the report is available to read and
download from the Korn/Ferry Institute here:
http://www.kornferryinstitute.com/about_us/thought_leadership_library/publication/3188/diversity_scorecard
Korn/Ferry Board & CEO Services Practice
Korn/Ferry International's Board & CEO Services Practice
assists clients with board director search and selection, CEO
Search and selection, CEO Succession Planning and assessment, board
effectiveness, and director/executive compensation
consulting.
About Korn/Ferry International Asia Pacific
Korn/Ferry International, with a presence throughout the Americas,
Asia Pacific, Europe, the Middle East and Africa, is a premier
global provider of talent management solutions. Korn/Ferry, based
in Los Angeles, was the first major global executive search firm to
operate in Asia Pacific when it opened its doors in Tokyo in 1973.
Today it has eighteen offices in key business centers throughout
the region. Korn/Ferry delivers an array of solutions that help
clients to attract, engage, develop, and retain their talent.
Visit www.kornferry.com for more information on the Korn/Ferry
International family of companies, and www.kornferryinstitute.com
for thought leadership, intellectual property and research.
SOURCE﹛Korn/Ferry International