Women offer helping hands – not elbows

Appointing women to boards is slowly growing momentum, argues veteran director Joan Withers.

THE ACCUSATION quoted in Jo Doolan’s tax column last week that some female leaders are holding out their elbows so others cannot walk through the boardroom door demands a response.

The case for diversity is generally well understood and reinforced by numerous studies but the discussion around how best to address gender and wider diversity issues at boardroom and senior executive level continues.

Those of us who have operated in the CEO and non-executive director space over a number of years can attest to significant positive changes in the calibre of corporate governance. That evolution over the last couple of decades has seen a far more professional approach, higher standards, higher expectations of directors and a greater awareness of the risks inherent for those embarking on a governance career.

Board positions in large, highprofile companies are sought after. However, the rigour around identifying the skills and attributes required to ensure the board’s composition is fit for its purpose is far greater than it was even a few years ago. Often in the past, board members would approach someone known to them. In my experience, boards of most major companies now conduct a more formal appraisal of the skills required to complement those of existing directors, and to ensure competencies match the requirements of the company.

So it is in this context that we are trying to improve the gender imbalance at board level, and also improve other elements of diversity such as age and ethnicity.

I see this as both a supply and demand issue. First, we need to ensure that there is an ongoing pipeline of new talent. And we also need to ensure that there is sufficient heat coming on the ‘‘dinosaurs’’, who fail to see that they cannot continue to credibly defend a board populated only by late-middle-aged white males.

Many of us who hold senior governance roles are involved in trying to improve the gender equilibrium. Global Women provides networking opportunities for women leaders and a dedicated leadership programme. Through the Institute of Directors, many of us mentor younger women seeking to start or expand governance careers. As chair of Auckland Airport, I appointed the first woman to the Future Director scheme, which allows an aspirant director to sit around the board table for 12 months. The 25 Percent group, to which I belong, has been championed by male business leaders.

Ultimately, company directors are responsible for preserving and enhancing long-term shareholder wealth. So we do need people populating boards who will add value and who are there on merit.

Without exception, my female board colleagues are superb directors, highly respected by their male peers. Again, without exception, each of them is trying to improve the ability of other qualified women to join the ranks of company directors, through the example they set, the influence they have in board deliberations on composition and in the giving of time and energy to assist individuals more directly. In fact, I can’t think of one example of ‘‘elbows out’’ but there are myriad examples of a ‘‘hands up’’.

There are signs that the pace of change is starting to accelerate. The latest NZX statistics on board composition show that in the quarter to 30 June 2014, the 39 companies reporting had a breakdown of 11 per cent female directors. However, since May 2013, 19 companies have listed on the stock exchange and NZX figures show 18 per cent of the 113 directors are women.