25 Percent Group Targets Board Diversity

25 Percent Group Targets Board Diversity

Twenty-five percent female participation on boards by 2015. That is the single-minded objective of the 25 Percent Group, which was launched by the Prime Minister, Rt Hon John Key in Wellington today.

Comprising 12 members who are chairs, directors and senior management of some of New Zealand’s leading companies and organisations, the 25 Percent Group is focused on results, rather than advocacy.

25 Percent Group Convenor and CEO of Goldman Sachs New Zealand, Andrew Barclay says that while the economic benefits of gender diversity at board level are well proven and widely acknowledged, effective action to break down barriers and bring about real change has been slow in coming.

“We can point to at least four recent international studies that prove companies governed by boards with a higher percentage of women members perform better.

“To achieve better results, the business community must move decisively to remove the barriers that preclude women from participating in the highest levels of leadership,” Barclay says.

Group member and Vector Chairman, Michael Stiassny agrees:

“It’s an economic argument. It’s not about politics, it’s about performance. Research has proven that companies with greater diversity of leadership perform better on every measure. Companies and shareholders should be demanding diversity on their boards as they stand to gain the most,” he says.

According to the 25 Percent Group, the most commonly cited barrier to achieving better diversity at board level is a lack of suitably qualified candidates.

The group argues that that is not necessarily the case; it’s more a lack of visibility of candidates that is the problem.

“Rather than focusing on ‘known’ candidates, executive search firms and company chairmen need to challenge their thinking on board recruitment processes and look more broadly at the total available talent pool and be more open and lateral in their thinking around people’s experience and potential contribution.

“This does not compromise the concept of meritocracy – the qualified and capable women are there. We just have to ensure they have the chance to demonstrate their skills and the opportunity to make that contribution,” Barclay says.

Acknowledging that change is led from the top, the members are committed to setting measurable diversity objectives within their own organisations.

Group member and experienced company director, Joan Withers says she joined the 25 Percent Group based on her desire to see acceleration in the number of women taking up roles on significant boards in New Zealand.

“I am looking to have a minimum of 25 percent women representation on the boards I chair and introducing clear diversity policies,” Withers says.

As head of one of New Zealand’s biggest employers, Progressive Enterprises Managing Director, Dave Chambers believes the only way to tackle the diversity issue is head on.

“We have already set targets that are reported against in our monthly executive meeting. We’re well on the way to achieving 25 percent female representation in most parts of our business but we want it in all areas by 2015. This is not about tokenism; it’s an important reminder to consider how we go about selecting the best person for the job,” Chambers says.

Ultimately, the 25 Percent Group’s actions will pave the way for an expanded and more visible pool of talented, qualified women to build the boardrooms of the future.

“Each member is focused on bringing more women into our own organisations. This will substantially increase the pool of talent from which we have to choose executives, CEOs, directors and Chairs. The intention is for that to then be reflected in board composition.

“We will be sharing our experience with our peers and encouraging them to also take action to get more women in senior leadership roles in their organisations,” Barclay says.

The 25 Percent Group comprises Chairs and CEOs from a selection of private, publicly-listed and multi-national companies committed to achieving diversity of thinking at senior management level and in New Zealand boardrooms.

• Andrew Barclay - CEO, Goldman Sachs New Zealand (Convenor)
• Wayne Boyd – Independent Director
• Dave Chambers - Managing Director, Progressive Enterprises
• Barbara Chapman – CEO, ASB Bank
• Jan Dawson – Independent Director
• Andrew Harmos – Chair, NZX
• Jonathan Ling – CEO & Managing Director, Fletcher Building
• Gabriel Makhlouf – Secretary to the Treasury
• Michael Stiassny - Chair, Vector
• Sussan Turner – Group Managing Director, MediaWorks
• Mark Verbiest – Chair, Telecom & Transpower
• Joan Withers - Chair, Mighty River Power & Auckland Airport

25 Percent Group Charter

We agree to undertake the following actions to achieve measurable improvement in senior management and boardroom diversity within New Zealand:

• Promoting the evidence-based business case for more women in leadership roles through dissemination of national and international research, and media outreach
• Voluntarily setting targets against which to measure our own companies’ performance in increasing women’s participation, as a contribution to the 25 percent target for New Zealand
• Supporting companies to understand and comply with NZX diversity reporting rules
• Encouraging colleagues across the business sector to take action to get more women into leadership roles in their companies, and sharing our experience and knowledge
• Connecting women seeking leadership roles to networks, information and opportunities.

www.25percentgroup.co.nz

ENDS

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