Women have been filling directorships, but at a slower rate than projected, according to MSCI ESG Research. If the trend continues, 30 percent of directorships will not be held by women until at least 2029.

Despite increased emphasis and additional advocacy in the last few years, women are taking up directorships at a slower rate than projected by MSCI ESG Research under its Business as Usual scenario in 2015. This is according to the MSCI 2018 Women on Boards Progress Report.

As a result, MSCI ESG Research has updated the projection that 30 percent of directorships will not be held by women until at least 2029, if the current rate of increase remains the same.

Pace of Change Needs To Be In Line

Asset owners and managers in Asia are increasingly becoming aware of the potential impact of corporate governance factors, which includes improving diversity and female representation on corporate boards and in senior management, said Jack Lin, Asia Pacific Head of Client Coverage at MSCI.

«This year’s report shows that there are some bright spots of progress with companies, but the pace of change needs to be more in line with the strong advocacy from global investors to see better female representation at the companies they invest in,» Lin added in a press statement.  

Selected Findings

  • Women held 17.9 percent of all directorships at MSCI ACWI Index companies as of October 16, 2018, up only slightly from 17.3 percent last year. Among MSCI World Index (Developed Market) companies, women held 21.6 percent of all directorships (up from 20.4 percent), with women at U.S. companies holding 23.4 percent of directorships (up from 21.7 percent). Women held 11.2 percent of board seats at MSCI Emerging Markets Index companies (up from 10.2 percent)

  • Over a fifth of the 2,694 MSCI ACWI Index companies still had all male boards and nearly all still had majority male boards. Only 11 companies had boards that were majority female (up from seven in 2017), with another 32 divided exactly 50-50 (up from 21)

  • Female representation at the CEO level remains low across MSCI ACWI Index constituents. However, in the CFO position, there has been strong growth in the number of women, especially in the Emerging Markets. This is notable in China, where the proportion of female CFOs (19.3 percent) is noticeably greater than the overall MSCI ACWI representation (11.1 percent)