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With the debate on gender diversity on Europe's boards continuing to gather momentum, the Institute of Directors in Ireland (IoD) recently undertook research exclusively with women members...
to examine what progress has been made in relation to achieving better gender balance on Ireland's boards and what barriers still remain.
The research found that while progress has been made in relation to improving gender diversity on boards in Ireland, significant obstacles still remain for women - specifically in the appointment process and in accessing the boardrooms of Ireland's publicly listed companies (Plcs).
It is clear that the women surveyed believe that some progress has been made, with 58% of women saying that gender diversity has improved on their board in the last five years and over a third considering gender diversity to be a medium or high priority for their board. It is also encouraging to see that 94% of the women surveyed feel equal in the boardroom and that women place a high value on director training, with 68% of those surveyed having already undertaken formal director training and 57% of the remainder intending to do so in the future.
The women are also confident that it is their skills and experience that has earned them their board positions, with the majority (55%) saying that their gender had not been a factor in being appointed, or not appointed, to a board position.
The research also identified a number of barriers that women feel are impeding their access to the boardroom. 70% of the women directors consider it to be more difficult for women to become non-executive directors in Ireland than men, with the lack of transparency in the appointment process and a lack of access to the same connections and networks as men, cited as the main reasons for this difficulty. Some also believe that there is an over-reliance on the existing ‘directors' club' with little real effort given to exploring the wider talent pool.
The boardrooms of Ireland's publicly listed companies were identified as the toughest to access, with 72% of the women surveyed saying that there are specific barriers to women being appointed to Plcs in Ireland. When asked why they believe that the representation of women at board level in Plcs in Ireland is 9%, in comparison to the EU average of 16%, the women again cited the lack of transparency in the appointment process and the lack of access to the same networks as men. The women also feel that the number of interlocking directorships in Ireland also acts as a significant barrier and that a small group of people populating many boards in Ireland creates a difficult chain to break.
Mandatory gender quotas have been proposed more and more recently as a method of addressing gender imbalance on boards and the subject always sparks intense debate. Indeed, following significant opposition last year, the EU changed proposals to introduce mandatory quotas for the boards of Europe's publicly listed companies to a ‘softer' approach that will see Europe's Plcs obliged to favour female candidates, who are equally qualified for board positions, until a 40% share is reached by 2020 or earlier.
When asked about gender quotas as a means of increasing the number of women on boards in Ireland, 43% of respondents to the research say that targets, rather than quotas, are preferable and a further 25% of women say that gender quotas are the wrong approach and that appointments should be made on merit, not gender.
The barriers identified by the women surveyed are not just barriers to gender diversity, but barriers to board diversity as a whole. Achieving diversity in the boardroom should not solely focus on gender - it should include ensuring diversity of skills and experience, age and ethnicity - and is essential in order for boards to encourage constructive debate and to challenge the executive. Diversity brings a range of perspectives, experiences and expertise to discussions, helping to avoid a group-think mentality.
Appointments that are based on a ‘who you know' selection process are not in the best interests of any board. We need to focus on addressing the issues raised in the appointment process, the specific barriers for women accessing the boards of Plcs in Ireland and ensure that boards are encouraged to look at a wider talent pool when making appointments.
Maura Quinn, Chief Executive, Institute of Directors in Ireland.