Women participation on boards picks up pace in 2022

MORE women became directors of listed companies, statutory boards and institutions of public character (IPCs) in 2022, as gender diversity in boardrooms gained momentum in Singapore.

Last year, women accounted for nearly 40 per cent of all new director appointments made by statutory boards and the largest Singapore Exchange (SGX) listed companies, according to an annual study by the Council for Board Diversity (CBD) published on Thursday (Mar 2).

This also raised the proportion of women directors to its highest levels since the CBD was established in 2019, and brings women’s participation on boards (WOB) of listed companies closer to targets set by the CBD.

“Many large companies and statutory boards are showing commitment to diversifying their boards to strengthen their capability,” said Loh Boon Chye, co-chair of the CBD and chief executive of SGX Group.

“With the business environment changing at a much faster pace than before, diversity of thought on a board has come to the fore as organisations seek to capitalise on new opportunities and navigate challenges.”

Among the top 100 SGX primary-listed companies by market capitalisation, WOB improved to 21.5 per cent in end-2022, up from 18.9 per cent a year earlier.

A record 36 per cent of appointments last year were women directors, which CBD noted may have been influenced by companies responding to SGX Regulation’s (SGX RegCo) requirements for greater disclosure on board diversity policy since January 2022.

SGX RegCo had required issuers to set a board diversity policy that addresses gender, skill and experience, and other relevant aspects of diversity. Issuers must also describe the board diversity policy and details such as diversity targets, plans, timelines and progress in their annual reports.

Among the top 100 listed companies, 26 had at least 30 per cent women participation on their boards in end-2022, an improvement from 18 a year earlier. Meanwhile, the number of companies with all-male boards fell to 13 in end-2022, down from 17 previously. Companies with all-male boards that appointed women directors in 2022 include The Hour Glass, UOL and Yangzijiang Shipbuilding.

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However, other companies such as Hotel Properties Ltd, UOB Kay Hian and Haw Par Corporation were among those that continued to have all-male boards.

Of the top 100 companies, seven had gender-balanced boards – defined as having 40 to 60 per cent of board seats held by women or men. Far East Hospitality Trust had an equal number of men and women directors as at end-2022, while CapitaLand Integrated Commercial Trust, Singapore Post and Sats were among those with at least 40 per cent of WOB.

For the broader pool of all SGX-listed companies, women’s participation on boards also improved to 14.6 per cent in end-2022 from 13.5 per cent a year earlier. However, 42 per cent still had all-male boards, only slightly better than the 45 per cent in end-2021.

The largest listed companies have crossed CBD’s first leg target of having 20 per cent WOB, with the next target to have 25 per cent WOB by end-2025.

The CBD was established by the Ministry of Social and Family Development in 2019, and it introduced aspirational targets for boards to leverage diversity for business value. The targets took into account the different starting positions in board gender diversity for different types of organisations.

CBD had targeted for the top 100 listed companies to achieve 20 per cent WOB by end-2020, 25 per cent WOB by end-2025, and 30 per cent by end-2030. Meanwhile, IPCs and statutory boards had targets to achieve 30 per cent WOB as soon as possible.

The latest report also showed that statutory boards have now met their WOB targets, with women participation reaching 31.4 per cent as at December 2022, up from 29.7 per cent a year earlier.

With the target met, CBD said that statutory boards would be looking at “improving other aspects of diversity”.

Mildred Tan, co-chair of the CBD and chair of Singapore Totalisator Board, noted that the government’s commitment to diversify statutory boards in various aspects – including skills, gender and race – “has gained significant traction”.

“This demonstrates that diversity on boards is a growing necessity for organisations to thrive in today’s environment, and is achievable when there is a concerted effort to make it a priority,” she said.

Minister-in-charge of the Public Service Chan Chun Sing said: “With greater diversity in demographics, experience and skill sets, there will be more robust discussions and decisions, taking into account a wider range of perspectives, to benefit Singapore and Singaporeans.”

Among statutory boards, the share of gender-balanced boards rose to 20 per cent in 2022 from 18 per cent in 2021. Nearly half of the statutory boards had at least 30 per cent WOB, and there were no statutory boards with all-male boards.

Meanwhile, the top 100 IPCs also saw their proportion of WOB improve from 28.4 per cent to 29.3 per cent in end-2022, moving close to the 30 per cent target. Over half of the top 100 IPCs had at least 30 per cent WOB, and just four had all-male boards.

“While it is difficult to look ahead and predict what lies ahead in the future, it is important that charities are able to remain relevant and adaptable to the changing needs of society,” said Gerard Ee, chair of the Charity Council.

“Charity boards should embrace the culture of continuously evaluating and revitalising their boards, and ensure that they adequately represent the community they serve.”