Government called to act on super board diversity

Government should make diversity a requirement of fit and proper policies for superannuation trustees, Woman on Boards (WOB) has said.  

Its latest Boardroom Diversity Index (BDI) found that sectors which set measurable gender balance targets have made more progress than those that relied on “good intentions and rhetoric alone”. 

“Hope is not a business strategy,” WOB said following lack-lustre movement on diversity in all sectors except Government and ASX boards. 

Gender diversity amongst superannuation trustees has declined slightly according to the figures (21.8 per cent in 2012 to 20.6 per cent this year) - a worrying sign given that Australians fund the sector via tax concessions for contributions, WOB directors Ruth Medd and Claire Braund said. 

“There is an urgent need for reform in this sector and the regulator (APRA) should consider making diversity a requirement of fit and proper policies for superannuation trustees - this would bring the sector into line with the ASX,” said WOB. 

They praised the former Government for its work to improve gender diversity in Government - the top 34 Government boards by remuneration have almost reached the 40 per cent target. 

“Only in the Government sector do we see more than 30 per cent women on boards and committees,” said WOB.  

“The former Federal Government set mandatory targets of 40 per cent women on its boards by 2015 and exceeded this overall with significant progress across many portfolios.” 

WOB said WA industry needed to take a leaf from the Government’s book and were dragging the chain at just 7.7 per cent. 

The report said national sporting organisations had taken a step in the right direction, while ASX’s rule change in 2010 had improved that sector’s achievements. The position of more women as board chair-person also needed to remain a focus. 

The Index assesses 850 organisations across eight sectors as at 30 June 2013. 

In March, the Australian Council of Superannuation Investors’ (ACSIs) research into ASX200 board diversity found progress was slow with woman accounting for 15.5 per cent of ASX board members.

A Queens University Professor believes mandated gender diversity was brought in following the failure of director independence. Professor Sally Wheeler said there was confusion between independence as identity as opposed to independent thinking, as reported by Super Review.

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