Companies need more women on boards: ACCA

Canadian public companies must open the path to leadership to more women and ensure at least 30% of their board members are women, says the head of the Canadian branch of the Association of Chartered Certified Accountants.

“Too few women have corporate board positions,” says ACCA Canada head Suzanne K. Godbehere.

Women are poorly represented on Canadian boards, comprising only 14.5% of the nation’s 500-largest company boards. Many countries report an even lower percentage.

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An ACCA report finds the 30% rule is widely accepted as the minimum proportion of women needed on boards to make an impact on the way companies work.

A “30% Club” was launched in the United Kingdom in 2010. Its members are chairmen of UK companies who have voluntarily committed to bring more women onto the nation’s corporate boards.

“Gender diversity creates more effective boards, reflecting a broader range of skills, experiences and perspectives,” said Godbehere. “This is especially important as women gain financial power throughout the world. However, too many companies still aren’t getting it.”

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Globally, 39.8% of companies still have no female directors, and less than one-tenth of organizations have reached the 30% female representation that constitutes an effectively diverse board, finds the World Bank.

“ACCA Canada prefers the 30% target, because it can be easily applied across all company boards, regardless of their size,” said Godbehere. “But the specific number isn’t as important as the fact that women need to be fairly represented on the boards of Canadian public companies. Today, they’re not. And that’s not acceptable by any measure.”

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.