Women on Boards: A Conversation with Male Directors

Crucial CG Conversations (10)

Happy International Women's Day 2023.

Since today, 8th March 2023, is International Women's Day 2023, it made sense to remain focused on women on boards. Therefore, today's crucial CG conversation will review IFC’s thought leadership publication – “Focus 9: Women on Boards: A Conversation with Male Directors.” The report was compiled and edited by Marie-Laurence Guy , Carmen Niethammer , and Ann Moline (thanks ladies)

It is no longer news that the presence of women on boards contributes to improving corporate performance. Yet, globally, a majority of directorships are held by men. Some years ago, to better understand the opportunities for and obstacles to increasing the number of women on boards, IFC invited over 15 prominent male chairpersons, CEOs, and directors of listed and unlisted companies across a range of industries and countries to share their opinions on how women add value to the corporate decision-making process. ?

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I focused my review on an important question that was asked all respondents: “Can you offer some practical tips for women seeking directorships?” Here are the responses.

Gilberto Mifano (Brazil)

“Women should prepare for board positions by seeking the appropriate education and experience. They need to challenge themselves to move into C-level management jobs. If we are giving unprepared, unqualified women seats on the board just because they are women, it can actually do a disservice to qualified women. It could create the impression that women do not add value to a board.”

Peter Dey (Canada)

“Mentoring programs help. Networking is important. If you demonstrate success in business, then you will make your way up the ladder and people will call on you. This applies equally to men and women”

Zhang Shude (China)

“Women must take the initiative to reach higher in the corporate hierarchy. The fact that they are a minority in the boardroom is not due to lack of ability, but because the institutions aren’t ready for it yet. In order to be heard, women must interact more with the powerful shareholder groups. There needs to be some societal change as well, to give women more space to grow and prosper.”

?Ashraf Gamal (Egypt)

“I would encourage them to read a lot and learn about the company. When they step onto the board, they should not be confrontational. In their first few meetings, they should listen more than talk, to gain a better understanding of the board’s dynamics. They should not feel intimidated, though. If they need help, the chairman should step up. Still, if the woman is strong enough, then she won’t need the chairman’s protection to say what she thinks.”

Christian Strenger (Germany)

“Quite often they need to be encouraged to take on non-executive director positions. In Germany, there are many women who have the right qualifications to sit on boards, but you have to convince them that it is a worthwhile experience. Women who seek board positions should work on building their business knowledge base. They should join associations and take courses on how to become a good nonexecutive director. Go to annual meetings. And most importantly speak up on business issues. This will help them attract attention. One of the main problems right now is that many proper candidates are not visible enough. So, you have to make a name for yourself, speak out for what you believe in, and become a recognizable figure.”

Jaspal Bindra (India)

“Women need to be more aware of their strengths, because they are typically more focused on their shortcomings, so they limit themselves. I think this is a biological difference from men, who think they can do their boss’ job from their very first day. We also need to take more seriously the notion of learning from role models. They should devote a certain amount of their time to mentoring other women and advising how they got their work-life balance right and how they managed to combat male domination.”

Patrick Zurstrassen ?(Luxembourg)

“They should join the nearest directors’ institute and participate in its governance committee work. They should network with lawyers and auditors. And, only take good directorships so as to preserve their good reputation.”

Paul Chang (Malaysia)

“While the government’s initiative may set the impetus for more women’s participation in corporate boards, the women need to equip themselves with the relevant knowledge and skills in boardroom deliberations. It is also very important for women to challenge themselves and take a more proactive involvement on corporate issues.”

Zaffar Khan (Pakistan)

“Several things: The first is that women in Pakistan’s corporate world should be more vocal about their desire for board directorships. Second, Pakistan’s Institute of Corporate Governance should help women market themselves for these board positions. Third, business school graduates should aim for jobs with management responsibility. Women also should network with major shareholders. And finally, they might consider a board position with a non profit or NGO as a stepping stone.

Mervyn King (South Africa)

“They should take a director training course, offered in South Africa, for example, by the Institute of Directors. This would be helpful even for women who are chartered accountants or attorneys, because it gives them the theoretical background they need. I am working right now with companies to create apprenticeship programs, so that young women and men can work with and shadow an experienced director for a couple of years. At the conclusion of the apprenticeship, they would receive certification by the experienced director. This will help build a pool of young people eligible as board members. I would also encourage women to lecture, teach, and write articles, to get their name out there.”

Lars Thunell (Sweden)

“To start, of course, they should have the relevant qualifications and a strong CV. They should network, something that women don’t do enough of. They should find a mentor. Women also need to become more comfortable in taking more risk. If you’re going to make a difference, you have to take a little risk every now and then. This shows that you’ve actually accomplished something, and not just followed along with what everyone else in the organization is doing.”

Yilmaz Argüden (Turkey)

“They should aim for assuming responsibility for a company or a business unit. People who have held balance sheet responsibilities are more attractive as a board candidate. Obviously, being part of the right networks is also useful, as it increases the brand equity of the individual.”

John Plender (United Kingdom)

“Unless you have been the chief executive of another listed company it’s quite hard to get that first non-executive directorship — regardless of gender. But that said, a lot of people manage to win appointments on boards by being assertive. If you push yourself hard with the headhunters you will appear on many more lists.”

Peter Browning (United States)

“Networking is the first thing. When you look for someone to fill a board position, you look first among the members of your network to see if anyone has the required skills. Nobody puts aside a good résumé, but it makes a difference if you know — or someone you know knows — the person. In addition, it is important to make search companies and head-hunters aware of your résumé and your interest in board positions. About 60 percent of board positions are now found by head-hunters. Companies can get very specific with their head-hunters about the types of candidates they want in terms of skills and in terms of background. Diversity is on the agenda, and companies have to get out in the broader world and look at the whole pool of talent.”

Patrick Chisanga (Zambia)

“Joining the Institute of Directors is a good approach. This will enhance their credibility. The institute can lobby companies to draw from the pool of women who have taken the directors’ training. Women have to become more visible and come forward in social networks so that people are aware of them and exposed to their qualifications and experience, as well as the value they could bring to a board. Here in Zambia, the golfing fraternity and sorority remain an effective network. Apart from qualifications and experience, women should also be prepared to answer questions regarding the time they are able to devote to board matters. Women have many roles. We expect them to be mothers and housewives in addition to being good professionals.”

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I hope current and aspiring female directors will find these comments and suggestions useful.

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Please let me know which one resonates with you.