Women in demand for directorships
TOKYO — With Prime Minister Shinzo Abe’s push for more outsiders on Japanese boards raising the prospect of a director shortage, lawyers in Tokyo are plotting to fill the gap with another group he wants to empower: women.
Companies must appoint at least two outside directors starting next year or have explanations for why they didn’t, according to a draft governance code published by the regulator last month. The Daini Tokyo Bar Association is building a register of women who can be board members or auditors and will publish it to coincide with the new standards, said Tetsuya Kobayashi, a member of the group.
Abe made improving how businesses are run a pillar of his growth strategies in June as he seeks to enhance profitability at Japanese companies. He has also called for more women in leadership roles in society.
The move from the lawyer group aims to address both goals, Kobayashi said, in a nation where less than 10 per cent of Topix index companies said they had female directors.
“This will provide an option for firms looking for promising candidates,” Kobayashi said recently. “It will make the recruiting task much easier.”
Members of the bar for at least five years that meet other criteria will be eligible for inclusion, with the list being provided free of charge to businesses looking to meet new regulatory requirements.
Abe has reiterated a target for women to hold 30 per cent of leadership positions in Japan by 2020.
While he stopped short of enforcing a quota for companies, the cabinet approved a bill this year for businesses with more than 300 employees to disclose plans to hire and promote more female workers.