Firms desensitised to gender diversity issue
Australian firms are at risk of stalling as they are becoming desensitised to the issue of gender diversity, according to AMP Capital.
AMP Capital corporate governance manager, Karin Halliday, said despite the many benefits of gender diversity, there were an even greater number of reasons, biases, and excuses holding the country back from addressing it fully.
"One problem is we've been talking about gender diversity for so long that we're becoming dulled to the issue," Halliday said.
"In Australia, you are less likely to be appointed chief executive or chairman of a company if you are a woman than if you are a man named Peter, and that has to change."
AMP Capital's latest gender diversity report found there was a positive correlation between a company's governance quality and the number of women directors.
The report found that companies with better gender diversity had:
- Far fewer issues relating to related party transactions;
- Half the number of concerns around board compositions including better independence; and
- Better remuneration in terms of quantum, structure, and disclosure.
"Many male directors tell us that women directors tend to put greater preparation into their attendance at board meetings and after seeing this some men report they are now also reading the papers in more detail," Halliday said.
"It has also been mentioned that meetings go longer when women are present; the more diverse the opinions and perspectives represented around the board table, the longer and more robust the discussions, which is pleasing to hear as an investor.
"Boards are also becoming true meritocracies as the white males who have traditionally occupied the majority of board seats now need to compete for roles by proving they are the best person for the job."
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
