Deloitte Global’s latest Women in the Boardroom report highlights slow progress for gender diversity across industries has been saved
Deloitte Global’s latest Women in the Boardroom report highlights slow progress for gender diversity across industries
11 November 2019
Luxembourg, 11 November 2019: Deloitte Global’s sixth edition of Women in the Boardroom: A Global Perspective reports that women hold just 16.9 percent of board seats globally, a 1.9 percent increase from the report’s last edition published in 2017. The numbers underscore a now-familiar challenge: women are largely under-represented on corporate boards, and progress to change this trend continues to be slow.
In Luxembourg, amongst the 36 companies analysed, 33 women hold board positions. Top industries with the highest percentage of women on boards in 2018 include Manufacturing with 17.5 percent, Technology, Media & Telecommunications with 14.3 percent and Financial Services with 6 percent. When it comes to female board committee members, the Risk function has the highest score with 19 percent, followed by Nominating (16.1 percent), Audit (15.7 percent) and Compensation (13 percent). For women occupying the position of Committee Chair, Risk once again takes the lead with 23.1 percent, followed by Compensation (18.8 percent), Nominating (15.4 percent) and Audit (13.6 percent).
Studies have repeatedly shown that increasing diversity is not only the right thing to do for an organization’s culture, it also leads to better business outcomes. Increased diversity leads to smarter decision-making, contributes to an organization’s bottom line, and powers innovation, among other benefits.
“Embedding diversity into organizational culture is an important focus area for organizations. Each year, Deloitte Luxembourg extends an invitation to a number of business schools and universities across Europe to bring together bright young talent for our Young Women Challenge, with the objective of gathering fresh perspectives on the topic of gender balance in the corporate sphere. Today’s young female students will have the potential to hold board seats in the future. At Deloitte Luxembourg, diversity and inclusion are a strong part of our DNA, allowing us to make a significant impact and bring positive change together,” states Christian van Dartel, Diversity and Inclusion Leader at Deloitte Luxembourg.
Yet barriers to gender diversity in the boardroom, and more broadly throughout the workplace, persist. Outdated workplace cultures, unconscious bias, and lack of sponsorship are just a few of the factors which prevent many women from reaching senior leadership roles. Women hold just 4.4 percent of CEO positions globally. CFO positions are nearly three times more diverse, but women still hold just 12.7 percent of these positions globally. Given that many board members are recruited from the executive level, this also contributes to a shortage of women in the boardroom.
“The number of women in financial leadership roles is growing, however we all need to address the remaining gap and take concrete action to achieve long-lasting change in the demographics of the industry. Championing and supporting women in our workspace is a priority. We at Deloitte seek out promising talents and create pathways to success whereby everyone can receive mentorship in order to excel and succeed in becoming the leaders of tomorrow. Diversity is pivotal in creating, not only a better environment, but also improved business performance. Together, we are actively working towards a more inclusive future,” adds John Psaila, Managing Partner at Deloitte Luxembourg.
Deloitte Global’s Women in the Boardroom report shares the latest statistics on global boardroom diversity, exploring the efforts of 66 countries to increase gender diversity in their boardrooms and features insights on the political, social, and legislative trends behind the numbers.
Read more about Deloitte Global’s Women in the Boardroom report here: https://www2.deloitte.com/lu/women-in-the-boardroom
About Women in the Boardroom: A Global Perspective
On behalf of Deloitte Global, MSCI ESG Research Inc. collected boardroom diversity data covering nearly 8,648 companies in 49 countries spanning Asia Pacific, the Americas, and EMEA. The data was collected as of 15 December 2018. Based on this data, the Women in the Boardroom publication includes global, regional and country analysis of the progress made towards greater board diversity. It also includes a breakdown of how well women are represented in boardrooms across 6 key industries—financial services; consumer business; technology; media, and telecommunications; manufacturing; life sciences and health care; and energy and resources. To supplement this data, Deloitte Global compiled information about diversity quotas and other board diversity initiatives from 17 additional countries. So, in total, the publication explores the efforts of 66 countries to promote boardroom gender diversity. Finally, interviews were conducted with 3 directors from Australia, the United States, and Spain to provide editorial perspective about the publication findings and additional insight into how boardroom diversity is progressing in their parts of the world.
About the Deloitte’s Global Center for Corporate Governance
The Deloitte Global Center for Corporate Governance brings together the knowledge and experience of Deloitte member firms around the world in the critical area of corporate governance. Its mission is to promote dialogue among Deloitte practitioners, corporations and their boards of directors, investors, the accounting profession, academia, and government. Since 2009, the Global Center has launched over 65 centers of corporate governance in Asia, Europe, the Middle East, Africa, and the Americas. Find us online at: www.global.corpgov.deloitte.com.
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About Deloitte in Luxembourg
In Luxembourg, Deloitte consists of more than 100 partners and over 2,300 employees and is amongst the leading professional service providers on the market. For over 65 years, Deloitte has delivered high added-value services to national and international clients. Our multidisciplinary teams consist of specialists from different sectors and guarantee harmonized quality services to our clients in their field. Deloitte General Services, société à responsabilité limitée, is an affiliate of the Luxembourg member firm of Deloitte Touche Tohmatsu Limited, one of the world’s leading networks of professional services firms.