Reframing the board diversity issue: set 25 by 25 target

STUDIES upon studies have shown there is clear association between a board's gender diversity and company performance. Yet Singapore has been softer than usual in pushing the agenda. In our views, a "softly, softly, catchee monkey" approach cannot work. We need to move the needle boldly, with specific execution targets and timelines.

Board diversity is not about women's rights or women's issues. It is also more than a simple addition of different perspectives. Last year, a report by McKinsey showed that diversity also helps to attract talented employees by building strong role models and improve decision-making quality. In 2017, Morgan Stanley's examination of the tech companies found that those with better gender diversity deliver higher returns to shareholders. Credit Suisse, also in 2017, said companies with at least one woman director deliver better returns compared to those with all-male boardrooms. It also found that companies where women made up at least 15 per cent of senior management were 50 per cent more profitable than those where less than 10 per cent of senior managers were female.

Deloitte, in its recently released Women in the Boardroom - A Global Perspective report, provided a sense of where we are right now in terms of female representation on company boards. Compared to G7 countries, women participation in Singapore's boards is low, higher only than Japan. Prime Minister Shinzo Abe has publicly set a bold goal to have 30 per cent of all leadership positions to be filled by women by 2020.