Boards urged to get on board with diversity

The Institute of Directors (IoD) urges NZX listed companies to set gender diversity targets to improve the sobering board gender statistics. Seventy seven percent of the top 122 NZX companies have less than 30 percent of women directors on their boards, with 39 having no women at all.

The IoD says in a statement that boards need to lift their game as board diversity is critical to maintaining a competitive and vibrant economy. The challenges of disruption and the modern world call for modern and diverse boardrooms.

“The IoD has long held the view that diversity of thought and perspective in the boardroom improves business performance and innovation,” IoD chief executive Simon Arcus says.

The IoD urges listed boards to take active steps to achieve 30-50 percent of women directors.

“We understand that change takes time. Boards should be setting their own diversity policies, appropriate targets and declare this in their annual reports. Timeframes and initiatives should be authentic and set accountability, but also take business needs into consideration,” Arcus says.

Of the top 122 companies: • 32 percent have no women on their

boards. • 19 percent have between 10 percent and

19 percent women directors. • 26 percent have between 20 and 29

percent women directors. • 10 percent have between 30 and 39

percent women directors. • Seven percent have between 40 and

49 percent women directors. • Five percent have 50 percent women directors.

The IoD has developed a guide to support the promotion of diversity at board tables, and help board chairs and key decision makers take steps to address New Zealand’s poor boardroom diversity statistics. This is being sent to all NZX chairs and to the IoD’s more than 7600 members. It will also be publically available on the IoD website. Getting on board with diversity, offers five practical steps for boards.