75% of ISEQ 20 boards have less than 30% female membership

New report also shows the internationalisation of Irish boards with overseas directors accounting for 44% of Irish board appointments in 2020

Women now account for a quarter of all ISEQ 20 board directors, but 75% of these boards have less than 30% female membership. Picture: Pexels

Women now account for a quarter of all ISEQ 20 board directors, but 75% of these boards have less than 30% female membership.

That’s according to the first Ireland Spencer Stuart Board Index, which analyses board governance practices in the ISEQ 20 index - the 20 largest companies trading on the Euronext Dublin exchange by trading volume and market capitalisation.

The report shows Ireland is some way behind the gender diversity of FTSE 150 boards, where women account for 34% of all directors and 71% of boards have at least 30% female membership.

The Index also found women are under-represented in most key roles across the ISEQ 20, accounting for only 5% of chairs, 15% of CEOs, 20% of audit chairs and 11% of nomination committee chairs. The exception is remuneration committees chairs, 40% of whom are women.

The report found there is also a gender gap in non-executive directors tenure, with men serving just over a year longer on average than women.

Internationalisation of Irish boards 

The study also shows the increasing internationalisation of ISEQ 20 boards.

More than two fifths (44%) of Irish board appointments in 2020 were overseas directors and all bar three of the ISEQ 20 boards now have foreign non-executive directors (including chairs).

Just under one-third of the membership of Irish boards (executive and non-executive), and 38% of non-executives, are foreign nationals with 10% of ISEQ 20 boards chaired by foreign nationals.

MERC Partners | Spencer Stuart, who conducted the report, noted that the appointment of new foreign directors reflects an overall effort by ISEQ 20 companies to refresh their boards, with 45% appointing a new director in 2020 and first-time directors accounting for 20% of the new intake.

Ruth Curran, Managing Partner, MERC Partners | Spencer Stuart.

Ruth Curran, Managing Partner at MERC Partners | Spencer Stuart said: “While the Board Index reveals increasing diversity levels on Irish boards, what it really demonstrates is the desire for diversity of opinion and background.” 

“We are increasingly seeing Irish companies looking for candidates from further afield as their business strategies and ambitions evolve.” 

“This is something that works both ways: being part of a global leadership advisory firm, we are experiencing a rising demand for Irish candidates on boards internationally. The performance of Irish businesses on the world stage has not gone unrecognised and there is a real demand for the expertise of Irish executives on global boards.”