From tokenism to gender parity

Despite incremental progress, women remain underrepresented in Indian boardrooms. How can we accelerate the rate of change?

A woman board director recently shared a thought with me: “I wish I wasn’t the only woman in the room.” She valued her role and the opportunity to contribute, but she also felt the weight of being the sole female voice. While her insights were respected, she often wished for more diverse perspectives at the table – other women who could bring different experiences and viewpoints. “There are moments when I wonder,” she said, “would the conversation be richer if there were more of us here?”

She’s not alone. Many women on corporate boards share this experience – present, but wishing for greater representation.

When it comes to gender parity in the boardroom, corporate India has certainly made progress – but there are still miles to go before we can pat ourselves on the back. The Ministry of Corporate Affairs recently reported that women occupy only 18.6% of all board positions in listed companies. This remains well short of the 30% benchmark, a global standard considered to be the minimum threshold for effective gender diversity.

When we consider the Top 200 NSE-listed companies, the figure climbs to 21% – a marginal improvement. Sector also seems to play a role, with the healthcare, financial and consumer goods industries leading the way.

Overall, with male-dominated boardrooms being par for the course, women remain starkly underrepresented in the upper echelons of corporate life in India.

With Women’s Day being celebrated this month, now is a good time for all of us to pause, reflect and revisit our commitments to gender parity at the seniormost level. Yes, we have made some strides in recent years, thanks to a greater focus on inclusivity and diversity. The revised Companies Act of 2013 made it mandatory for listed companies and large public limited firms to appoint at least one woman director to their boards. Many businesses have also set their own targets and policies in this area.

Sadly, these well-intentioned initiatives often end up in tokenism, i.e., superficial gestures that simply give the appearance of equality – rather than fostering it in any meaningful way. Tokenism actually makes things harder for women by undermining their legitimacy and contributions. Signs of tokenism include:

• An excessive focus on diversity numbers rather than diversity mechanisms and benefits
• Ad-hoc, symbolic appointments without a sustainable pipeline of female talent
• Failure to include women directors on key decision-making committees like nomination and remuneration, audit, etc.
• Recruitment strategies that favour celebrities and seasoned professionals, leading to ‘overboarding’ of a small group of women
• Refusal to hire women ‘newcomers’ to the board while welcoming men with similar experience and credentials

The Glass Ceiling Persists

Why is it still so tough for highly qualified, talented women to secure a seat at the corporate power table? Despite efforts from companies and policymakers, key barriers remain deeply embedded. The obstacles holding women back aren’t always obvious, making it easy to miss them. For instance:

• Many companies prefer to appoint directors with top-level leadership experience, but women hold only 19% of C-suite positions in India.
• The search for directors often relies on the personal networks of existing board members. A male-dominated board usually means a male-dominated pool of candidates.
• With fewer women directors around, high-potential women don’t receive as many mentorship, networking or learning opportunities as their male peers.
• Women’s ambition can look different from men’s ambition, both in terms of timeline and work-life balance. Pausing or decelerating is often mistaken for lack of ambition.
• From subtle microaggressions to blatantly exclusionary behaviours, the “old boys’ club” can discourage women from pursuing senior leadership roles.

Gender Parity Benefits Everyone

Having more women on the board isn’t just a moral imperative – it’s also good for business. Companies with at least three female board members perform significantly better than those without.

A gender-diverse board enjoys several advantages:

• Improved effectiveness. Women directors add their unique expertise and perspectives to the table, which helps the board avoid blind spots, enhance problem-solving and strengthen decision-making – all leading to better advisory and business outcomes.
• Richer discussions. A gender-balanced board is marked by broader, deeper and more nuanced dialogues. Women are likelier to introduce concerns from diverse stakeholders. They are also more comfortable saying “I don’t know” and asking for information.
• Greater diligence. Women members can be more persistent in getting to the bottom of thorny, uncomfortable questions and addressing accountability issues. Research also shows that higher female representation improves monitoring practices and quality.
• Smoother collaboration. Women tend to bring a less combative, more collaborative approach to the boardroom. This facilitates a better relationship between the board and management.
• Stronger reputation. The presence of women directors helps the company attract top female talent and inspire women employees.

How to Enhance Board Composition

How can companies move beyond token appointments to achieve meaningful gender parity at the board level? As noted in an article published by the Directors’ Institute: The solution requires more than just meeting regulatory quotas; it demands a fundamental shift in corporate culture – one that genuinely values and promotes women at every level.

The board itself is a critical agent of change. Directors can play an active role in making their boardroom more equitable and diverse. Here are eight suggestions to consider:

1. Look beyond historic experience.

Instead of appointing only “safe bets” as board members, expand the pool of women candidates. Place less emphasis on prior executive/board experience and take a chance on first-time directors who offer distinct skills, expertise and acumen. In particular, look for candidates who can switch gears from the tactical to the strategic.

2. Enrich perspectives.

To succeed in today’s complex environment, the boardroom needs a healthy mix of capabilities, experiences and backgrounds. Some companies have had great success in bringing in directors from fields like law and academia. A more flexible approach can bring a new and valuable richness to the board composition.

3. Get creative with governance.

To get more women directors with a governance track record, explore innovative solutions. Can high-potential candidates be appointed to the boards of subsidiaries or other entities to gain the required experience?

4. Reform the selection process.

Take your search for directors beyond the confines of informal, male-dominated networks. A more professionalized and formal recruitment strategy can go a long way towards building a gender-balanced boardroom.

5. Build a sustainable pipeline.

Maintain an active pipeline by fostering the advancement of women in leadership roles and the C-suite. Is the company losing female talent at crucial junctures along the leadership journey? If yes, why? Cultivate a longer-term view and start building relationships with prospective candidates 2-3 years in advance.

6. Harness the ‘multiplier effect’.

Research in the financial services industry has revealed the multiplier effect: with every woman added to the C-suite, there is a positive, quantifiable impact on the number of women in senior leadership roles. A gender-diverse executive team can help the board achieve its long-term goal of developing women leaders at the highest level.

7. Dismantle invisible barriers.

Address entrenched biases that prevent women from rising in the company ranks. Ensure equitable access to high-visibility assignments, promotion opportunities, leadership development programmes, and recognitions and awards. Interrogate traditional notions of the “ideal” corporate leader. Expand your shared understanding of “ambition” and “success”.

8. Create a sense of urgency.

One of the greatest obstacles in the way of gender parity is the feeling of complacency and “we’ll get there eventually”. Instead of letting things plateau out, now is the time to forge ahead and accelerate the rate of positive change. Building a sense of urgency is key: no more excuses!

Time’s Up for Excuses

A seat at the table isn’t a favour – it’s a necessity. Corporate India cannot afford to keep dragging its feet on gender parity in boardrooms.

The evidence is clear: More women on boards means stronger governance, smarter decisions, and better financial performance.

So, let’s stop the token gestures. Let’s stop waiting. It’s time for real action—because businesses that don’t prioritize gender diversity will be left behind. And that’s just bad business.