Female representation on the boards of finance firms increases to 37%

Last year, 56 financial companies signed on to the Women in Finance Charter which seeks to improve female representation in firms operating in Ireland. 

Female representation on finance company boards has increased by 5% in the space of a year after they committed to increasing gender balances at senior levels, a new report has found.

Last year, 56 financial companies — which combined employ almost 45,000 people — signed on to the Women in Finance Charter. It required these companies to set targets for increased female representation.

According to the first annual report on the Women in Finance Charter, compiled by the Economic and Social Research Institute (ESRI), companies who’ve signed on to the charter have increased female representation on boards from 32% to 37%.

Female representatives on executive committees also increased from 32% to 35%.

Dr Helen Russell, one of the report’s authors, said greater gender equality in management roles is important from a business and social justice perspective in an industry where almost half of employees are female.

According to the report, the most commonly identified barrier to improving gender balance was companies having a low number of female applicants. Among the companies surveyed, 63% identified this as among the main barriers.

Low turnover in senior management was also identified among the main barriers by 56%.

In addition, 52% of companies found improved flexible working options was the most effective way of increasing their gender balance while 49% also cited “examining gender balance in succession planning” 

Patricia Callan, chair of the Women in Finance Charter steering group, said increasing female representation makes good business sense. 

She added that it will provide a more “diverse set of perspectives” as well as “ensure firms are more reflective of the society in which they operate," she said. 

Ms Callan added that they would encourage more companies to sign the charter.