Corporate boards of directors are not taking full advantage of the benefits that including qualified, competent women can bring, according to new policy paper released Thursday.
The Institute for Governance of Private and Public Organizations (IGPPO) policy paper recommends that representation by both genders on corporate boards should be increased to a minimum of 40%.
The report also recommends that the gender balancing process should take place gradually, with target dates set based on the pace at which organizations appoint new directors, and must not be done at the expense of board quality. Companies should also integrate diversity and gender equality into their corporate policies and report regularly on their progress.
Since 1990, the percentage of women directors on boards of North American publicly traded corporations has stalled at 15%, IGPPO says
“The proportion of women directors remains low despite the fact that the reasons invoked to explain this situation — perhaps plausible in years past — have since become largely excuses or equivocations,” says Yvan Allaire, chair of the board of directors of IGPPO.
This low level is no longer acceptable, IGPPO says.
The policy paper was prepared by a working group made up of IGPPO board members. The group was chaired by Monique Lefebvre, a well-known psychologist who specializes in executive coaching. The report was later approved by the full IGOPP board, with one dissenting vote.
“After two decades of minimal progress, it is time to increase gender balance on corporate boards in Quebec and the rest of Canada,” says Lefebvre. “The governance of companies benefits from the balanced perspectives of men and women oin their board.
IE
Report calls for 40% gender equality target for corporate boards
Low proportion of women directors is no longer acceptable, IGPPO says
- By: IE Staff
- June 18, 2009 June 18, 2009
- 12:55