Synopsis
A recent study reveals that women hold 5.8% of board seats across 116 Indian unicorns, underlining the potential for improved gender diversity in the sector. While 18.3% of board seats in Indian companies are held by women, the global average is 23.3%. The report highlights ongoing efforts to bridge the gender gap in corporate governance.Key Takeaways
- Women hold 5.8% of board seats in Indian unicorns.
- Only 48% of unicorns have at least one female director.
- Finance sector leads in female board representation.
- Diverse boards enhance financial performance.
- Female representation in boardrooms increased by 3.6% since 2022.
Bengaluru, March 8 (NationPress) Women represent 5.8 percent (76) of the 1,314 board seats across 116 Indian unicorns, as per a report published on Saturday. This highlights a substantial opportunity to enhance gender diversity within the unicorn sector in India.
In comparison, women held 18.3 percent of board positions in corporate India during 2023, while the global average was 23.3 percent, based on a recent report by Deloitte, titled 'Women in the Boardroom: A Global Perspective'.
PrivateCircle Research, a market intelligence platform, revealed that at the company level, 56 out of 116 unicorns (48 percent) had at least one woman on their board, yet only 13 unicorns (11 percent) featured more than one female director.
This indicates ongoing efforts by Indian unicorns to close the gender gap in corporate governance.
“It has long been recognized that companies with more diverse boards often achieve better financial results. McKinsey's 2023 Diversity Matters Even More report found that businesses with diverse boards are likely to see enhanced financial performance,” stated Murali Loganathan, Director of Research at PrivateCircle Research.
Specifically, firms in the top quartile for gender diversity on their boards are 27 percent more likely to excel financially compared to those in the bottom quartile, Loganathan added.
The analysis indicated that finance unicorns boasted the greatest number of women directors (16), followed by software (8), retail (7), insurance (5), travel and hospitality (5), and emerging technology (4) unicorns.
Numerous unicorns also distinguished themselves by having multiple women directors on their boards.
The presence of several women leaders sets a commendable precedent for the wider ecosystem, showcasing that gender-inclusive leadership is achievable and advantageous for business growth.
According to the March 2024 edition of the Women in the Boardroom report, female representation in boardrooms has seen a 3.6 percent increase since 2022, with the timeline for achieving gender parity shortened by seven years, as noted in the report.
