Female Board Members on Rise but Kiwi Companies Still Lag

Female Board Members on Rise but Kiwi Companies Still Lagging Behind World

January 26, 2017: The New Zealand Stock Exchange (NZX) Gender Diversity Statistics report shows that women directors rose from 17 to 19 percent at listed companies, an increase from 13 percent in 2013, the year NZX diversity data was first reported.

Miranda Burdon, Chief Executive Officer of Global Women, which advocates for board diversity, says this is a positive sign that New Zealand is moving towards a tipping point. She also points out that the increase in female directors highlights the importance of diversity reporting.

However, New Zealand still lags behind the UK, US, Australia and Canada in representation of women in board positions.

International research shows that increased representation of women in senior roles improves shareholder returns, is good for business, and improves risk management.

The NZX data shows that:

• Overall 19% of directors and officers on NZX Main Board were female in 2017 – this is up from 17% in 2016 and 13% in 2013
• Larger companies are leading the way
o The S&P/NZX50 rises to 27% female directors (14% for those outside the S&P/NZX 50) and 20% female officers (19% for those outside the S&P/NZX 50)
o The S&P/NZX 10 Index rises to 32% female directors and 28% officers
• Energy and Healthcare are the two sectors that have over 25% female representation for both directors and officers
• Over half of NZX Main Board issuers have a diversity policy – up from 44% in 2016

According to Global Women research, 10 women now have a seat at previously all-male boardroom tables in New Zealand, including at Tegel, a 56-year-old company.

Other previously all-male-led companies that gained female board members in 2017 include Moa breweries, Seeka, South Port New Zealand and Mainfreight.
Miranda Burdon says that while the public sector has achieved 40 percent female leadership, the private sector—while making progress—is still underperforming.

Thirty-two Kiwi companies—approximately one in five of all 164 NZX-listed companies— still lack any female thinking at the highest level (zero female board members).

“As a modern nation, we expect a vibrant business ecosystem that is prepared for a changing world. Shareholders in Kiwi businesses deserve that, too, and that means addressing this imbalance.”

“The NZX diversity report shows us that large NZ companies are leading the way by increasing gender diversity at board and executive team level,” Ms. Burdon continued.
“We challenge the 32 companies without any female board members to make 2018 the year they bring more women in to their boardrooms.”

These companies appointed their first female board director in 2017:
o Tegel – Bridget Coates
o Mainfreight - Kate Parsons and Sue Tindal
o Moa – Sheena Henderson
o Metro Glass – Angela Bull
o Promisia Integrative – Helen Down
o Property for Industry – Susan Peterson
o Rakon – Lorraine Witten
o Seeka – Cecilia Tarrant
o South Port New Zealand – Clare Kearney
Around the rest of the world, movement continues towards a balanced leadership mix.

The EU is pushing for a quota of 40% females in leadership roles in business, as critics say change is not happening fast enough on its own.

A number of countries including Israel, Greece, The Netherlands, Belgium, India and Kenya have specified quotas or limits for gender representation on company boards.

New Zealand has no such legislation, and Miranda Burdon says that while quotas can be circuit breakers, they are not necessarily ideal solutions:

“If a quota is required it is often a response to resistance to change. Implementing the quota doesn’t change this attitude as it forces the point, making it a potentially unconstructive environment.

“The true leaders in New Zealand, such as Westpac’s David MacLean, Transpower’s Alison Andrews, and Air New Zealand’s Christopher Luxon, are setting clear targets and addressing gender representation quickly and consciously.

“They know it is not only good for business, it is the right thing to do.”
About Global Women
Global Women is a collaboration of more than 260 of New Zealand's most influential women leaders, promoting inclusion and diversity for improved societal and economic growth.

Established in 2009, Global Women is seen as a catalyst to transforming leadership representation of women in New Zealand. It actively builds the capability and pipeline of quality leaders through its Breakthrough Leadership Programme and Activation Series, capitalising on its current membership to cultivate outstanding future leaders.

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