A woman walks through Toronto’s financial district on Monday, July 30, 2018. Women remain underrepresented in boardrooms of Canadian companies listed on the Toronto Stock Exchange despite the introduction of disclosure requirements intended to boost their numbers, a study by the Conference Board of Canada has found. THE CANADIAN PRESS/Graeme Roy

A woman walks through Toronto’s financial district on Monday, July 30, 2018. Women remain underrepresented in boardrooms of Canadian companies listed on the Toronto Stock Exchange despite the introduction of disclosure requirements intended to boost their numbers, a study by the Conference Board of Canada has found. THE CANADIAN PRESS/Graeme Roy

Women still underrepresented in boardrooms despite ‘comply-or-explain’ rule: study

The study found more than half of the board seats that became vacant in 2018 went to men

Women remain underrepresented in boardrooms of Canadian companies listed on the Toronto Stock Exchange despite the introduction of disclosure requirements intended to boost their numbers, a study by an Ottawa think tank has found.

The Conference Board of Canada said that while there is some progress in the proportion of women on corporate boards, the pace of change remains slow.

“More needs to be done if we’re going to achieve that goal of parity earlier,” said Susan Black, Conference Board CEO and lead author of the study, in an interview.

In 2015, the Ontario Securities Commission and other Canadian regulators implemented a so-called comply-or-explain rule, which requires most publicly traded companies to disclose the number of women in key positions or explain why they have not met their goals.

Women only made up 15 per cent of Canadian boards in 2018 – an increase of just four percentage points from 2015, when seven provinces and two territories introduced the disclosure requirements, the study found.

“(The) improved ‘comply or explain’ disclosure requirements have failed to accelerate the entry of women into corporate boardrooms,” the Conference Board report reads.

The study said there is no compelling evidence that disclosure has accelerated the inclusion of women on boards since a faster pace would have led to a greater increase in representation since 2015.

Black said the numbers demonstrate that requiring organizations to publicly state what they’re doing is not sufficient to change behaviours and speed up progress toward gender parity in boardrooms.

The study found more than half of the board seats that became vacant in 2018 went to men and about a quarter were left unfilled or eliminated.

“The good news is women still filled a quarter of the board seats; the bad news is women only fill a quarter of the board seats,” said Black.

If men and women were added to boards on a 50:50 ratio, boardrooms would reach parity in five years, she added.

Black said some approaches organizations can take to achieve this is by having specific diversity targets and board term limits, as well as keeping a list of potential board candidates and making sure that list is diverse.

Companies that adopted such diversity practices had consistently higher representation of women on their boards, the study said.

It recommended that companies expand their pool of senior women executives to develop the talent pipeline for women board members.

The Conference Board study compiled all public disclosure reporting data released by the Canadian Securities Administrators from 2015 to 2018, which included data from 589 companies.

Using 2016 data, Statistics Canada did a similar study in 2019 that found only 19.4 per cent of seats on corporate boards of directors across public, government and private organizations were filled by women, while more than half of all boards were composed entirely of men.

“At the current rate in which women are being appointed to corporate boards, it will take another 17 years to achieve gender parity in Canada’s boardrooms,” the report read.

This story was produced with the financial assistance of the Facebook and Canadian Press News Fellowship.

Denise Paglinawan, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

women in business

Just Posted

Surrey City Hall. (File photo)
Discussions about Surrey-owned land in Langley should be behind closed doors, councillors say

That’s what Councillors Brenda Locke, Jack Hundial and former Surrey mayor Bob Bose say

Rich Coleman, who was responsible for the gaming file off and on from 2001 to 2013, was recalled after his initial testimony to the Cullen Commission last month. (Screenshot)
Rich Coleman returns to Cullen Commision regarding money laundering in B.C. casinos

The longtime former Langley MLA was asked about 2011 interview on BC Almanac program

A vacant lot in Willoughby Heights on 198A Street near 72nd Avenue was full of discarded trash on Saturday, Feb. 27, 2021. (Dan Ferguson/Langley Advance Times)
Fines for not separating gargabe, recycling going up in Langley Township

Most fines are now in the $250 range for trash-related infractions

Luke Moo (left) is raising funds to help displaced refugees from Myanmar. (Special to The Star)
Aldergrove resident fighting for more attention and aid on Myanmar crisis

Buela Say and Luke Moo are calling on local MP’s to take action and stand against ethnic cleansing

Walnut Grove Secondary student Sophie Drover will be competing in the Skills Canada National competition on May 27, 2021. (Joanne Abshire/Special to Langley Advance Times)
Langley student advances to national safety competition

Grade 9 student Sophie Drover won a provincial contest

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

Bradley Priestap in an undated photo provided to the media some time in 2012 by the London Police Service.
Serial sex-offender acquitted of duct tape possession in B.C. provincial court

Ontario sex offender on long-term supervision order was found with one of many ‘rape kit’ items

Mandarin Garden in Abbotsford had two event tents set up for outdoor dining. One of the tents, valued at more than $5,000, was stolen early Friday morning (May 14). (Submitted photo)
UPDATE: Dining tent stolen from Abbotsford restaurant is located

Owner says it would have cost more than $5,000 to replace the rented event tent

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Steven Shearer, <em>Untitled. </em>(Dennis Ha/Courtesy of Steven Shearer)
Vancouver photographer’s billboards taken down after complaints about being ‘disturbing’

‘Context is everything’ when it comes to understanding these images, says visual art professor Catherine Heard

Trina Hunt's remains were found in the Hope area on March 29. Her family is asking the public to think back to the weekend prior to when she went missing. (Photo courtesy of IHIT.)
Cousin of missing woman found in Hope says she won’t have closure until death is solved

Trina Hunt’s family urges Hope residents to check dashcam, photos to help find her killer

Chief Public Health Officer Theresa Tam listens to a question during a news conference, in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Restrictions will lift once 75% of Canadians get 1 shot and 20% are fully immunized, feds say

Federal health officials are laying out their vision of what life could look like after most Canadians are vaccinated against COVID-19

Mike Farnworth, pre-pandemic. (File photo)
Surrey Police recruitment not distracting cops from shootings, Farnworth says

‘That’s simply not the case,’ Public Safety Minister Mike Farnworth told the Now-Leader on Friday

Most Read