Where have all the female directors gone?

More than 70% of boards in 5 countries, including Singapore, have no female independent directors - what happened to diversity?

According to a release, findings in an inaugural board diversity study by Korn/Ferry International, The Diversity Scorecard: Measuring Board Composition in Asia Pacific, has found that female representation on boards of directors in the Asia Pacific region remains low and that female directors have different demographic characteristics compared to male directors.

The study's findings underscore an urgent need for Asia's boards to recruit more diverse directors, especially now when so many companies are at a turning point in the global economy. More than 70 percent of boards in five countries -- Hong Kong, India, Malaysia, New Zealand and Singapore -- have no female independent directors. Boards with two or more female directors were rare, while boards with three or more female independent directors were almost non-existent.

The study, the first in Asia Pacific focusing on board diversity, covers the largest 100 domestic companies by market capitalization in Australia, mainland China, Hong Kong, India, Malaysia, New Zealand, and Singapore. The study compares the extent to which female and male directors hold key leadership positions on boards, as well as the profiles of female and male directors in these countries. A total of 6,538 directors holding a total of 5,793 directorships in these companies were included in the study.

The study was conducted in partnership with Associate Professor Mak Yuen Teen of the NUS Business School at the National University of Singapore, who is a recognized authority on corporate governance in Asia.

"As Asia's growth trajectory propels it to a central spot in the global economy, the most effective boards will be the ones that are international -- with functional, sector and gender diversity," said Alicia Yi, managing director, Global Consumer Market of Korn/Ferry Asia Pacific, and member of the Board & CEO Services Practice.

"The world is taking notice of the potential and power of women -- as consumers, as leaders, and as a growing majority of the talent pool. Companies have started to recognize that successful boards should reflect the markets they serve and that homogenous leadership teams can be less equipped to do business in an increasing complex business environment," she added.

The study also found a key number of differences between the demographic characteristics of female and male directors, including:

• Female directors are younger than male directors across all countries, by about three years on average.
• Female directors were more likely than male directors to have law or accounting educational backgrounds, while male directors were more likely to have engineering and science backgrounds.
• The average tenure of female independent directors is shorter than male directors across all countries.
• Female directors are more likely than male directors to have public sector or not-for-profit sector experience.
• Female directors are generally underrepresented in board leadership positions such as board chairs and board committee chairs.