If the year 2111 seems like a long time from now, that's because it is. However, according to Deloitte Global Chair Anna Marks, if we proceed at our current pace, that is the year in which we will achieve gender parity for CEOs on a global basis. Women in the Boardroom: A Global Perspective, a new report from Deloitte Global featuring data from over 18,000 companies spanning 50 geographies, explores the steps that must be taken to make a more productive and intentional move toward gender parity in both the boardroom and the C-suite.
Directors & Boards: Looking at the results of Deloitte Global's report, Women in the Boardroom: A Global Perspective, how would you describe the state of progress toward gender parity in the boardroom?
Anna Marks: The business case for diversity has been established for some time. Research has shown that companies with more diverse boards tend to perform better financially, and that organizations that are more diverse as a whole with respect to gender — from top executives and board members to managers and employees — tend to outperform those that are less gender-diverse.
There has indeed been some progress toward gender parity in the boardroom. Since the last edition of Deloitte's report in 2022, there has been a 3.6 percentage point increase in the number of women on boards, now totaling 23.3%. And in the United States, women now hold more than 30% of Fortune 500 board seats, according to the Missing Pieces Report.
However, despite some improvements, we must acknowledge that women still hold less than one-quarter of the world’s board seats.
Further, while progress has resulted in the anticipated timeline for achieving parity dropping by seven years to 2038 (down from 2045 in the 2022 report), without significant actions and changes, even this time frame may not be realized.
There is a real need for meaningful action in order to accelerate momentum here to help make gender parity a reality.
DB: And what is the state of gender parity in the roles of board chair and CEO?
AM: There is still a long way to go when it comes to achieving gender parity at the board chair and CEO level.
Only 8.4% of the world’s boards are chaired by women — nearly three times lower than the percentage of women serving on boards more broadly. And only 6% of CEOs are women.
These statistics do not paint an optimistic outlook for pipeline development.
The current pace suggests that we won't reach global gender parity for chairs and CEOs until 2073 and 2111, almost 50 and 90 years from now, respectively.
The key is to understand the drivers for such low proportions and work tirelessly to address them.
DB: In your opinion, what would need to happen for gender parity in the boardroom to take place and who would need to take action?
AM: Chairs, boards and leadership teams need to work together to ensure board diversity remains an absolute priority.
More broadly, achieving gender parity in the boardroom will require collective efforts from a wide variety of stakeholders, including governments, business leaders, investors and advocacy groups.
The report sets out potential ways this can be done. For example, boards should have the right mix of experiences, skills and backgrounds when selecting board members, with more of a focus on skills and capabilities rather than on previously held job titles. Focus on pipeline development and ensure that women have equal opportunities for advancement into leadership roles. And, as part of that development, be creative in building governance experience
Government initiatives, such as mandatory quota legislation and voluntary targets, can also play a significant role in shaping gender diversity at the board level as has been proven in some geographies around the world.
Additionally, investors need to remain vigilant and clear in setting expectations around gender diversity.
DB: The report shows that that, in certain parts of Europe, there are countries that are closer to gender parity than others and certainly more than the United States. What are the reasons behind their progress?
AM: The progress toward gender parity varies across different regions, with some parts of Europe, for example, showing more significant advancements compared to other markets. Indeed, in some European countries, women hold a majority of board committee seats or committee chair roles.
Many countries with the highest rates of women serving on boards implement a mix of government initiatives, such as mandatory quotas or the use of targets, or leverage some degree of voluntary targets or disclosures to advance gender equality in the boardroom.
DB: According to your report, the financial services industry was the first- or second-most gender diverse industry in 30 of the countries that were analyzed. What does it appear that the financial services industry is doing right or at least better than other industries?
AM: According to a Deloitte U.S. study, over the past decade, more women have been added to financial services industry (FSI) C-suites than men. As boardroom gender diversity in financial organizations has increased during that time span, we may be seeing a virtuous cycle play out across the industry.
While the overall representation of FSI C-suite executives shows a more balanced gender distribution compared to other industry sectors, it is notable that many of these roles are nontraditional, such as chief digital officer and chief sustainability officer.
Therefore, it is crucial for organizations both within and beyond FSI to focus on building a robust pipeline of future women leaders to sustain and enhance progress in achieving gender parity.
The evidence supporting women's equity in business is undeniable. It is imperative to intensify our efforts to ensure that woman's equity becomes a central focus for the range of stakeholders in the wider ecosystem — including chairs, boards, executive teams, governments, lobbying organizations and investors.