New Zealand demonstrates remarkable progress in women's involvement in executive roles and salary, with female CEOs earning significantly more than their male counterparts and the country boasting over 40% female representation on corporate boards.
Globally, gender disparity persists in CEO positions, with only 6.5% of CEO posts held by women in 2022 according to the MSCI ACWI index, and even fewer in developed countries like Switzerland, the Netherlands, and Germany.
Despite some improvements, significant efforts are still needed to ensure stable positions for women on corporate boards, as highlighted by the rise in female representation to 25.8% in 2023 but with an average tenure of approximately three and a half years for women once they secure board positions.
At a time when the rest of the world suffers from depressingly low female representation in leadership positions, New Zealand is leading the way for women's involvement in executive jobs and salary.
At a time when the rest of the world suffers from depressingly low female representation in leadership positions, New Zealand is leading the way for women's involvement in executive jobs and salary. (Photo : by Jon Kopaloff/Getty Images)
Gender Disparity in CEO Positions
With an average remuneration of $5.9 million, female CEOs in New Zealand made significantly more money than their male colleagues, who made $2.6 million on average.
In the latest data from MSCI, this country of Pacific Islands has the highest percentage of female CEOs on its boards-more than 40%.
This stands in stark contrast to the MSCI ACWI index of 2,868 large- and mid-cap businesses from developed as well as emerging economies, which indicated that just 6.5% of CEO posts were held by women in 2022 (a tiny increase from 5.8% in 2022). Women made about 19% of CFO positions.
The percentage of women in senior positions lags even in developed countries. Less than 5% of CEOs were female, with the percentage of women in Switzerland (2.2%), the Netherlands (3.2%), and Germany (3.6%) among other nations. The earnings of female CEOs in Switzerland were more than four times lower than those of their male counterparts.
According to the MSCI research, there are less than 5% of female CEOs in Asia, with South Korea having the highest percentage (3.2%), Japan having the lowest percentage (1.1%), and Hong Kong having the highest percentage (4.8%).
According to the MSCI ACWI index, the industries with the highest percentage of female CEOs were healthcare and consumer discretionary, with 10.4% and nearly 20% of CFOs, respectively.
Progress and Challenges in Boardroom Gender Diversity
The proportion of board seats held by women increased to 25.8% in 2023, up from 24.5% in the previous year. While this rise is a positive development, experts highlight that significant efforts are still required to ensure women attain and maintain stable positions on corporate boards.
Chitra Hepburn, MSCI's Asia-Pacific head of ESG and climate, emphasized the existing gap in the tenure of women once they secure board positions. She noted that, on average, women spend approximately three and a half years on any given board. This suggests a need for further initiatives to promote gender diversity and equity in corporate leadership, aiming for not just inclusion but also longevity and stability for women in boardroom roles.
In the healthcare industry, the proportion of firms with all-male boards decreased from 6.8% in 2022 to 5.4% in 2023.
Out of the 11 industries that MSCI tracks, the information technology sector had the highest number of companies with all-male boards at 15%, up 0.8% from 2022. The materials industry came in second at 14%.
The most notable drop in all male boards was in real estate, which saw them drop from 14.8% in 2022 to 8.6% in 2023.
