Women on Corporate BoardsWomen on Corporate BoardsWomen on Corporate BoardsWomen on Corporate Boards

Powering the future

Arab Business Women in a Modern Economy

AIWF Conference Dubai

Celia de Anca

Merrill Lynch

External Diversity Adviser

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(*) Original professor Celia de Anca IE Business School November 2007© Instituto de Empresa. Prohibida la reproducción total o parcial sin el permiso escrito del Instituto de

Empresa.

Women on Corporate BoardsWomen on Corporate BoardsWomen on Corporate BoardsWomen on Corporate Boards

11--Women in business life; where are they? And where are they not?Women in business life; where are they? And where are they not?

22--Why are there so few women in higher decision making positions?Why are there so few women in higher decision making positions?

33-- Is this a problem for the corporate world?Is this a problem for the corporate world?33-- Is this a problem for the corporate world?Is this a problem for the corporate world?

44-- Good Corporate Governance and female representation on Good Corporate Governance and female representation on t b d i th li k?t b d i th li k?corporate boards, is there a link?corporate boards, is there a link?

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1-Women in Business life; where are they?Women in Business life; where are they?

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Women in Leadership: global figuresWomen in Leadership: global figuresWomen in Leadership: global figuresWomen in Leadership: global figures

In 2005 1.2 billion of the total world work force (2.9 billion) were women (40%) (28% in the MENA Region WB)( ) ( )

10% of members of parliament at world level

10-20% of management positions 10 20% of management positions

5% of high responsibility positions

10 women CEOs in Fortune 50010 women CEOs in Fortune 500

1/4 to 1/3 of the world’s businesses are owned by women (14.5% in

ILO 2007

the mena Region)

25% to 30% of female enrolment in MBAs

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25% o 30% o e a e e o e M s

Women’s Share: Legislators, Senior Officials & Top Managers

50%

60% Costa RicaUSATrinidad& TobC l bi

40%

ColombiaSpainPolandSlovenia

20%

30%SloveniaUKGermanyNorway

0%

10%ArgentinaMexicoJapanUAE0% UAETurkey

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Women on Corporate Boards

12%

14%

8%

10% USA 2003USA 2005

6%

8%Canada 2003Canada 2005Europe 2003

2%

4% Europe 2003Europe 2005

0%

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European BoardWomen Monitor 2006

EuropeanPWN.net

Women on Corporate Boards: Europe

30%

Women on Corporate Boards: Europe

25%

30%NorwaySwedenFinland

20%

FinlandDenmarkUK

10%

15% AustriaFranceGermany

5%

10% yNLSwitzBelgi m

0%BelgiumSpain

E B dW M i 2006

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European BoardWomen Monitor 2006

EuropeanPWN.net

The Spanish Equality LawThe Spanish Equality Lawp q yp q y

Art 75 “ Companies obliged to present unabridged financial statements of income will endeavour to include a sufficient number of

th i b d f di t t h b l d f women on their boards of directors to reach a balanced presence of women and men within eight years of the entry into effect of this act”. The equality Law, 2007 p. 483The equality Law, 2007 p. 483

In eight years following the law’s recommendations more than d b d f S d400 women will need to join the boards of Spanish listed

companies

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Female representation in Europe largest industry sectors

20% Household Goods

16%

18% Speciality FinanceOil & GasMedia % Entert

12%

14%Media % EntertTelecomTransport

8%

10% PharmaIndustrialBanks

4%

6% BanksInsuranceConstruction

0%

2% ChemicalsUtilitiesA t ti

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AutomotiveEuropean BoardWomen Monitor 2006

EuropeanPWN.net

Arab Women in Professional Life

50

60By Age Group

40

50

CCG

% Year 2003

30

CCGMashrekMaghreb

10

20 LDC

0

10

All ages 15 19 20 24 25 44 45 59 60 64

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All ages 15-19 20-24 25-44 45-59 60-64Source: Cawtar: Globalization & Gender Economic Participation of Arab Women

Women in SMEsWomen in SMEs

20

10

15

# 100 Adults, 18-64 Years old

5

FemaleMale

0Low Middle High

income Countries

Income Countries

income countries

Source: Global Entrepreneurship Monitor. GEM 2006

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22--Why are there so few women in the higher decision making Why are there so few women in the higher decision making iti ?iti ?positions?positions?

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Exiting Barriers for the Advancement of Women

Lack of desire

Different behavioral style

Experience

Commitment to personal life

Stereotyping

Senior visibility

p

0% 10% 20% 30% 40% 50% 60% 70%

Stereotyping

MenMenWomen

(Catalyst Survey 2002 in European organizations)

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Options and elections of women business leadersOptions and elections of women business leaders

I hibit

Options and elections of women business leadersOptions and elections of women business leaders

SocietyInhibitorsCatalysers

organization

Individual

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33--Is there a problem for the corporate world?Is there a problem for the corporate world?33 Is there a problem for the corporate world?Is there a problem for the corporate world?

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Lack of gender diversity: is there a problem?Lack of gender diversity: is there a problem?g y pg y p

• Non effective response to market demand

• decrease variety in views and opinions

• Lack of Innovation

L k f d t ti t h i i t• Lack of adaptation to changing environments

• Loos of corporate investment

• Difficulties for talent retention• Difficulties for talent retention

• Decrease in resources

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LEADERSHIP AND WOMENLEADERSHIP AND WOMEN

Level 1: Society

S i t

Barriers: Social role models, stereotyping, lack of women models, cultural pressureInstruments: Legislation, media support, role models, gender awareness

Society

Organization

Level 2: Organization

Barriers: lack of visibility, of opportunities, of experience,

Individual

pp , p ,

Instruments: work/life programmes, training, formal coaching, mentoring & career g, gdevelopment

Level 3: IndividualLevel 3: IndividualBarriers: Lack of desire, self confidence, training, career focus, commitment to personal lifeInstruments: Awareness, Personal development, networking, coaching and

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mentoring

Challenges for women business leaders

Provide support for work/life balance (including flexible working

g

Provide support for work/life balance (including flexible workinghours, parental leave for men & women, childcare facilities etc..)

Access to management training and line experience

Monitor equal opportunity policies (including recruitment, jobassignment, carer planning, grading, wages transfer & promotion)

Make the business environment more welcoming for women

Providing forums for women to address issues affecting them in nontraditional jobs and to foster the recognition of cultural valuestraditional jobs and to foster the recognition of cultural values

Harmonize remuneration structures for both male & femaleemployeesp y

Diversity training programmes to help them recognize the benefitswomen can bring to their business.

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Improve young women’s awareness of management education

ILO. Geneva 2005

44-- Good Corporate Governance and female representation on Good Corporate Governance and female representation on t b d i th li k?t b d i th li k?corporate boards, is there a link?corporate boards, is there a link?

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Good Corporate GovernanceGood Corporate Governancepp

Avoid potential problems of the lack of separation for the corporate Avoid potential problems of the lack of separation for the corporate control and its management

Responsibility with the company’s stake holders•Shareholders•Employees•Clients and supplierspp•Community engagement

Environmental issues

Ethical questions

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Good Corporate Governance IndicatorsGood Corporate Governance Indicatorspp

1- Board Practice:

Separation the positions of Chairman and Chief executive

Independent directors should represent at least 1/3 of all board members

To have an Audit Committee integrated by independent board b members

Transparency in remuneration of board members

2- Protocols against Corruption and fraud3- Existence of an ethical code4- Stakeholder responsibilities to be included in the board standards and practices5- Percentage of women on the board

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5 Percentage of women on the board

Source Eiris. 2006Source Eiris. 2006

Spanish Unified Code of Good GovernanceSpanish Unified Code of Good Governancepp

Recommendation nº 15 whereby “ When women directors are few or non existent, the board should state the reason for this situation and the measures taken to correct it; in particular, the Nominations Committee should take steps to ensure thatp

The process of filling board vacancies has not implicit bias against women The process of filling board vacancies has not implicit bias against women candidates

The company makes a conscious effort to include women with the target profile among the candidates for board places,

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Unified Code of Good Gobernance 2006 pp 18Unified Code of Good Gobernance 2006 pp 18

Good corporate Governance: gender trendsGood corporate Governance: gender trendsp gp g

Women ‘s profiles today represent much of the qualities needed it at boardroom levelboardroom level

N d t d fi th l ti d t th Need to redefine the selection procedures to ensure the “impartiality” and transparency of new appointees

A clear definition of profiles in a well defined grid of needs will lead to a natural selection of a balanced representation of women directors.

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