“The selection of the right people for the board is increasingly critical. Diversity of thought is the key.”
this issue attracts and the introduction of quotas in some countries, the fi gures remain low. The proportion of women on European boards is 17%. This fi gure is higher the further north you move. The lowest proportions are in Portugal (8%) and Poland (8%). The more positive news is that the trend is upwards. The proportion of women on European boards has increased by nearly 70% over the last four years. It is also notable that women are more likely to fi ll the role of independent and non-executive directors.
Age is another area of debate. The reality is that the people on boards tend to be those who have accumulated years of relevant and useful experience. In Italy and Spain around one in six board members are over seventy. The overall average of board directors is 58.2. Chairmen tend to be in their sixties and CEOs in their early fi fties. Over a third of European board members have some form of CEO experience.
Boards are also becoming more international in their make-up. The proportion of non-national directors on boards is 30% – up from 23% in 2009. Companies are increasingly eager to add board members with experience and expertise in Asia.
Of course, it is one thing to be willing to build a more diverse board and quite another to do so. Heidrick & Struggles surveys show that nearly two-thirds of directors
fi nd it diffi cult to hire well-qualifi ed ethnic minorities and more than half reported that it was hard to hire qualifi ed women directors. Nor is there widespread trust in the mechanisms for fostering diversity. Among men on boards, only 13% support quotas compared with 41% of women directors.
Board members argue strongly that diversity for diversity’s sake is dangerous and likely to be self-defeating. Instead, diversity must be rooted in meritocracy and the attainment of business goals. The needs of the business drive diversity.
And more diversity appears an unstoppable trend. “Boards will also need to widen their lens beyond executives with operating experience and look for diverse candidates who are in functional roles, former government or military leaders, who serve not-for-profi ts or are entrepreneurs,” predicts the Heidrick & Struggles report Bringing Asia onto the Board.
The selection of the right people for the board is increasingly critical. This must be based on a desire to learn rather than tokenism. Attracting a board made up of people with diverse skills, experiences and outlooks enables the board to avoid group think and to make the right decisions for the business. Diversity of thought is the key.
Heidrick & Struggles 7
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