Board diversity gathers momentum

A record 36% of director appointments to the largest companies in Singapore in 2022 were women, signalling a growing trend for gender diversity on boards in the city-state, according to the Council for Board Diversity (CBD).

In its study, published in March 2023, the CBD notes that the record high may have been influenced by the new Singapore Exchange Regulation Rule requiring companies to disclose their board diversity policy.

Source: CBD, March 2023

These appointments raised women’s participation in board directorships of the 100 largest companies to 21.5% in 2022, up from 18.9% in 2021.

Statutory boards achieved 31.4% women’s participation on boards (WOB) at the end of 2022, reaching a new high, while at the 100 largest Institutions of a Public Character (IPCs), women directors made up 29.3% of the board.

The CBD introduced aspirational targets in 2019 to encourage boards to leverage diversity for business value. For the top 100 primary-listed companies, the targets are to achieve 25% WOB by end 2025 and 30% by 2030. For the top 100 IPCs and statutory boards, the target is 30% as early as possible.

Mildred Chan, co-chair of the CBD and chair of Tote Board Singapore and Singapore University of Social Sciences Board of Trustees, comments: ‘Diversity on boards is a growing necessity for organisations to thrive in today’s environment and is achievable when there is a concerted effort to make it a priority.’