Opportunities for women on boards

Women on boards in 2024: the common issue at the top governance levels, and while statistics suggest progress, gaps still exist in the push for more diversity.

Most in governance are that women have traditionally been underrepresented at this level. However, more so than ever before, this is being challenged as part of a broader effort to move boards away from the “white, old, male” dynamic. 

That push has been boosted by mounting evidence suggesting that diverse boards lead to better decision-making, improved governance, and enhanced company performance. 

This guide explores the landscape of opportunities for women on boards in 2024, highlighting key trends, strategies for success, and the impact of increased gender diversity in corporate governance.

The two crucial points to remember about women on boards are:

• While there has been progress, it is frequently not enough to satisfy advocates of more female representation on boards. 
• Change has varied by region and industry, sometimes heavily

That said, here’s the latest in global trends towards diversity:

According to a report by Deloitte Global, the percentage of women on corporate boards worldwide has been steadily increasing, reaching approximately 20% in 2022. The same also highlights some countries, such as France, where the percentages are much higher (40%). 

While the figures are increasing yearly, Deloitte has called the pace of change “unacceptably slow”.

More and more laws continue to surface, calling for a minimum percentage of women on every board. 

They could sometimes exist at the national level, at the state level in jurisdictions like the US, and at the international level in the case of the EU. 

Usually, these minimum thresholds are around 30-40%, and affected companies often have a set number of years from when the law comes into force to comply. 

In many cases where laws are already in place – such as Norway, France and Italy – the proportion of women in board positions significantly exceeds the global average.

As you might expect, some industries have shown more growth in terms of diversity at the board level. 

The technology sector, traditionally male-dominated, has changed significantly, as have other industries like finance and consumer goods.

With the current rate of progress, some estimates suggest that achieving gender parity on corporate boards could still take several decades. 

Regulatory and cultural changes are factors that could speed things along. Market shocks, recessions and other crises may slow things down as companies prioritise other things ahead of diversity at the governance level.

Investors are very interested in environmental, social, and governance (ESG), which has also played a crucial role in promoting gender diversity. Companies with strong ESG scores, which include metrics on gender diversity, often attract more investment, pushing more businesses to prioritise female representation on their boards.

The slow pace of change disappoints many advocates, as are the discrepancies between industries and the types of board positions women hold. 

The path forward will undoubtedly be filled with more intense debate about transforming the holdout areas of governance from closed systems into open, diverse environments. 

Companies will likely face more pressure to join this transition as stakeholder interest increases. The more value investors, consumers and regulators place on diverse boards, the more pressure there will be to explore that principle.

In the rapidly changing boardroom landscape, there does appear to be more opportunity for women looking for governance roles – despite the continued growth needed for true gender parity.  

While the long transition is ongoing, the best chance for a coveted board role is to follow the usual steps to build your credentials in the industry. This includes dedicated education, targeted networking and building a personal brand that resonates in your industry.

It’s 2024 – nearly halfway through a decade that many analytics expect to deliver massive changes in governance. 

So far, statistics have indicated that while change is happening, it’s far slower than many would like.

However, many large economies – particularly in Europe – have already made considerable strides in terms of minimum thresholds and changing the fundamental makeup of boards in many industries. This culture is growing. Let’s see where it gets to next.