A woman walks through Toronto’s financial district on Monday, July 30, 2018. Women remain underrepresented in boardrooms of Canadian companies listed on the Toronto Stock Exchange despite the introduction of disclosure requirements intended to boost their numbers, a study by the Conference Board of Canada has found. THE CANADIAN PRESS/Graeme Roy

A woman walks through Toronto’s financial district on Monday, July 30, 2018. Women remain underrepresented in boardrooms of Canadian companies listed on the Toronto Stock Exchange despite the introduction of disclosure requirements intended to boost their numbers, a study by the Conference Board of Canada has found. THE CANADIAN PRESS/Graeme Roy

Women still underrepresented in boardrooms despite ‘comply-or-explain’ rule: study

The study found more than half of the board seats that became vacant in 2018 went to men

Women remain underrepresented in boardrooms of Canadian companies listed on the Toronto Stock Exchange despite the introduction of disclosure requirements intended to boost their numbers, a study by an Ottawa think tank has found.

The Conference Board of Canada said that while there is some progress in the proportion of women on corporate boards, the pace of change remains slow.

“More needs to be done if we’re going to achieve that goal of parity earlier,” said Susan Black, Conference Board CEO and lead author of the study, in an interview.

In 2015, the Ontario Securities Commission and other Canadian regulators implemented a so-called comply-or-explain rule, which requires most publicly traded companies to disclose the number of women in key positions or explain why they have not met their goals.

Women only made up 15 per cent of Canadian boards in 2018 – an increase of just four percentage points from 2015, when seven provinces and two territories introduced the disclosure requirements, the study found.

“(The) improved ‘comply or explain’ disclosure requirements have failed to accelerate the entry of women into corporate boardrooms,” the Conference Board report reads.

The study said there is no compelling evidence that disclosure has accelerated the inclusion of women on boards since a faster pace would have led to a greater increase in representation since 2015.

Black said the numbers demonstrate that requiring organizations to publicly state what they’re doing is not sufficient to change behaviours and speed up progress toward gender parity in boardrooms.

The study found more than half of the board seats that became vacant in 2018 went to men and about a quarter were left unfilled or eliminated.

“The good news is women still filled a quarter of the board seats; the bad news is women only fill a quarter of the board seats,” said Black.

If men and women were added to boards on a 50:50 ratio, boardrooms would reach parity in five years, she added.

Black said some approaches organizations can take to achieve this is by having specific diversity targets and board term limits, as well as keeping a list of potential board candidates and making sure that list is diverse.

Companies that adopted such diversity practices had consistently higher representation of women on their boards, the study said.

It recommended that companies expand their pool of senior women executives to develop the talent pipeline for women board members.

The Conference Board study compiled all public disclosure reporting data released by the Canadian Securities Administrators from 2015 to 2018, which included data from 589 companies.

Using 2016 data, Statistics Canada did a similar study in 2019 that found only 19.4 per cent of seats on corporate boards of directors across public, government and private organizations were filled by women, while more than half of all boards were composed entirely of men.

“At the current rate in which women are being appointed to corporate boards, it will take another 17 years to achieve gender parity in Canada’s boardrooms,” the report read.

This story was produced with the financial assistance of the Facebook and Canadian Press News Fellowship.

Denise Paglinawan, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

women in business

Just Posted

B.C. Centre for Disease Control data showing new cases by local health area for the week of May 2-8. (BCCDC image)
Vancouver Island COVID-19 local case counts the lowest they’ve been all year

On some areas of Island, more than 60 per cent of adults have received a vaccine dose

A nurse gets a swab ready to perform a test on a patient at a drive-in COVID-19 clinic in Montreal, on Wednesday, October 21, 2020. THE CANADIAN PRESS/Paul Chiasson
Island’s daily COVID-19 case count drops below 10 for just the second time in 2021

Province reports 8 new COVID-19 cases on Vancouver Island Wednesday

Photo by Marc Kitteringham, Campbell River Mirror
Campbell River dock fire spread slowed thanks to security guard

Creosote docks pose challenges for fire fighters

Scenes like this one in the dugout are all too frequent for parents and kids arriving to play baseball at Nunns Creek Park these days, spurring a request to the city to let them move to the Sportsplex in Willow Point. Photo from CRMB presentation to City of Campbell River
Safety concerns run Campbell River Minor Baseball out of Nunns Creek Park

Parents say ‘needle and feces sweeps’ have become part of everyday life for the baseball community

The cover of the newly redesigned Beaver Lodge Forest Lands activity guide. Photo courtesy Greenways Land Trust
Greenways redesigns Beaver Lodge activity guide

Guide has helped teach students for over a decade

Prince Rupert was one of the first B.C. communities targeted for mass vaccination after a steep rise in infections. Grey area marks community-wide vaccine distribution. (B.C. Centre for Disease Control)
B.C. tracks big drop in COVID-19 infections after vaccination

Prince Rupert, Indigenous communities show improvement

The AstraZeneca-Oxford University vaccine. (AP/Eranga Jayawardena)
2nd person in B.C. diagnosed with rare blood clot after AstraZeneca vaccine

The man, in his 40s, is currently receiving care at a hospital in the Fraser Health region

Canada’s demo Hornet soars over the Strait of Georgia near Comox. The F-18 demo team is returning to the Valley for their annual spring training. Photo by Sgt. Robert Bottrill/DND
F-18 flight demo team returning to Vancouver Island for spring training

The team will be in the Comox Valley area from May 16 to 24

Saanich police and a coroner investigated a fatal crash in the 5200-block of West Saanich Road on Feb. 4, 2021. (Devon Bidal/News Staff)
Police determine speed, impairment not factors in fatal Greater Victoria crash

Driver who died veered across centre line into oncoming traffic for unknown reason, police say

Ladysmith RCMP safely escorted the black bear to the woods near Ladysmith Cemetary. (Town of Ladysmith/Facebook photo)
Bow-legged bear returns to Ladysmith, has an appointment with the vet

Brown Drive Park closed as conservation officers search for her after she returned from relocation

Brian Peach rescues ducklings from a storm drain in Smithers May 12. (Lauren L’Orsa video screen shot)
VIDEO: Smithers neighbours rescue ducklings from storm drain

Momma and babies made it safely back to the creek that runs behind Turner Way

Signage for ICBC, the Insurance Corporation of British Columbia, is shown in Victoria, B.C., on February 6, 2018. THE CANADIAN PRESS/Chad Hipolito
$150 refunds issued to eligible customers following ICBC’s switch to ‘enhanced care’

Savings amassed from the insurance policy change will lead to one-time rebates for close to 4 million customers

Pixabay
Island Health: two doctors, new clinic space to avert Port McNeill health crisis

Island Health has leased space to use as an immediate clinic location to avert health crisis

Police investigate a fatal 2011 shooting in a strip mall across from Central City Shopping Centre, which was deemed a gang hit. The Mayor’s Gang Task Force zeroed in on ways to reduce gang involvement and activity. (File photo)
COVID-19 could be a cause in public nature of B.C. gang violence: expert

Martin Bouchard says the pandemic has changed people’s routines and they aren’t getting out of their homes often, which could play a role in the brazen nature of shootings

Most Read