The 25 Percent Group

This is a group of men and women who want to see more women on the boards of private companies. They want at least 25% female board members by 2015.

In 2010, only 9.3% of board members were women. Of the top 100 companies listed on the stock exchange, only three have a woman chief executive or managing director. However, the percentage of women on state-sector boards was 41% in 2010.

Recently, the NZX (stock exchange) made a rule that companies must list the numbers of women on their boards and in executive positions and compare this with the previous year. Women represent half the population and probably more than half the customers so they should be on boards. One international report said that boards with women on them have better average growth. One female executive said that it was more enjoyable having women on a board. One male executive said that women are not so aggressive and can focus more clearly on the business.

Two years ago the Australians made this same rule about listing numbers of women on their boards. The numbers of women have increased from 5% in 2009 to 33% this year.

However, women need to have the skills to become board members. The NZX believes that education can help. Although some countries have set a quota – Norway for example has a quota of 40% women on boards – the 25 percent group thinks that mentoring is a better idea.

While encouraging more gender diversity, members of the 25 percent group say this is just the start. Boards need more diversity in age, culture and experience. They need to represent the whole society.

Vocabulary

• state-sector – government organisations
• mentoring – a mentor is a friend or teacher who can give advice
• gender – male or female
• diversity – difference, not all the same

Questions

• Why are there so few women on our boards and in executive positions?
• Should boards of companies be more diverse?
• Is a quota a good idea?