October 2018
Executive Committee 2018 Feminization Index
Since 2011, female participation in the corporate governance of large French companies has seen a sharp increase following the Copé-Zimmermann law. Recent figures published in July 2018 (post General Assemblies) show that Boards of large listed companies (SBF 120) have now surpassed the 40% of women threshold (43% vs. 15% in 2010), as required by law as since 1st January 2017.
Many observers have rightly pointed out that this sharp increase in gender diversity at Board level has not been mirrored to the same extent within Executive Committees (EXCOM). Not being subjected by law to quotas, the progression of feminization within EXCOMs is, effectively, significantly lower than that of Boards.
Based on our new EXCOM feminization indicator for the 320 companies listed on the Paris Stock Exchange (CAC All-Tradable, former-SBF 250), carried out in July 2018, we have pinpointed that EXCOM count on average 16% of women.
This being so, detailed analysis of functions held by executive committee members reveals a significant disparity in feminization according to functions, all company categories included in the stock exchange index – CAC 40, SBF 120 or other CAC All-Tradable. Findings conclude:
Despite decision-makers gaining awareness over the past few years of the significance of women’s roles in raising company performance and being mindful of the need to increase gender diversity within executive committees, obstacles still remain: gender stereotypes, under-feminization of certain branches at University levels, greater hindsight on professional ambition….
We have observed that within the companies pioneering gender parity, the CEO sets the example by establishing rules and putting incentives into place, thereby playing a key role in promoting women with talent in management teams. Rendez-vous in 2019 for our next indicator to monitor progress alongside expectations within EXCOM in French companies!
Many observers have rightly pointed out that this sharp increase in gender diversity at Board level has not been mirrored to the same extent within Executive Committees (EXCOM). Not being subjected by law to quotas, the progression of feminization within EXCOMs is, effectively, significantly lower than that of Boards.
Based on our new EXCOM feminization indicator for the 320 companies listed on the Paris Stock Exchange (CAC All-Tradable, former-SBF 250), carried out in July 2018, we have pinpointed that EXCOM count on average 16% of women.
This being so, detailed analysis of functions held by executive committee members reveals a significant disparity in feminization according to functions, all company categories included in the stock exchange index – CAC 40, SBF 120 or other CAC All-Tradable. Findings conclude:
- - Above average (balanced) participation of women working in communication (56%), HR (40%) and marketing (43%), General counsel (31%) and risk & compliance (28%),
- Average participation of women working in transformation (14%), strategy & development (15%), finance & administration (16%), sales (16%), IT (17%) and engineering (19%),
- Significantly below average participation of women as CEO (6%), Business Unit (10%) and industrial operations (10%) management.
Despite decision-makers gaining awareness over the past few years of the significance of women’s roles in raising company performance and being mindful of the need to increase gender diversity within executive committees, obstacles still remain: gender stereotypes, under-feminization of certain branches at University levels, greater hindsight on professional ambition….
We have observed that within the companies pioneering gender parity, the CEO sets the example by establishing rules and putting incentives into place, thereby playing a key role in promoting women with talent in management teams. Rendez-vous in 2019 for our next indicator to monitor progress alongside expectations within EXCOM in French companies!
