Women 'take' European boards of directors

In Ireland 60% of appointments have been by women, in the Netherlands 58% .Thomas Barwick / Getty Images

The year 2019 has marked a milestone in the boards of directors of European listed companies, which for the first time have been accessed by almost as many women as men.

Of the 563 appointments there were, 49% were administrators, according to the

conducted by headhunter Heidrick & Struggles.

Although the governing bodies of companies that fluctuate on the stock market are still far from being equal, it represents a great advance in that direction.

In the case of the Spanish Ibex 35, it closed last year with a percentage close to 28% of female directors, with only 16 companies complying with the 30% quota recommended by the National Securities Market Commission (CNMV).

"It is the highest percentage since the statistics began," says the

report

, which argues that Europe is far ahead of the United States in incorporating women to its boards, and that this is largely due to the quotas imposed by the governments of many countries.

In Ireland 60% of the incorporations corresponded to administrators, in Holland 58%, in the United Kingdom 51%, in France half and in Spain 48%.

"This is relevant news," says Laura González Molero, president of the Association for Management Progress (APD) and the Spanish administrator that accumulates the most seats in the Ibex 35 companies, specifically, she is part of the governing bodies of Bankia , Acerinox and Viscofán (in addition to Ezentis, outside the selective indicator).

“But I'm not surprised by the great effort companies are making to respond to the demands of our

in this regard.

In the four councils I am on, we have only hired women this year.

The fees of course have to do.

It cannot be denied.

But all the councils seek that the candidate generates added value, not only fulfilling by fulfilling ”, he explains.

“It is clear that the good practices of listed companies are increasingly valuable to investors and shareholders, and gender diversity on the boards of directors is one of them.

This explains why many companies, which still have a low percentage of women on boards, are putting the focus at the time of renewals on hiring women ", adds Sara de la Rica, president of Iseak, who joined the governing body of Iberdrola.

González Molero also highlights that in 2020 they have seen very strong international competition among aspiring administrators.

"The focus on women is being very large and in some cases we have had problems choosing candidates, and that is very relevant news, it means that there is more and more female talent to choose from," he highlights.

Maite Aranzabal, Adolfo Domínguez's advisor, agrees: "Very valid women are entering, with experience in managing income accounts and with characteristics such as integrity, work capacity and common sense that the boards of directors demand so much."

Effects of covid

This is one of the trends highlighted by Heidrick & Struggles in its annual report on the signings on the boards of the main listed companies of 15 European countries, which in 2019 were involved in diversity, although in the case of race, nationality and ages, "progress was disappointing anywhere in the world."

An advance that this year could be more affected due to the impact of the covid, which is modifying the criteria when hiring administrators.

According to the

, they veer towards tradition, looking for CEOs and CFOs and above all background in finance, an "experience that may be particularly critical this year when companies face more business risk than ever."

And that could hinder the advancement of equality, since there are fewer women in charge of financial management and as CEOs, according to Pilar Santiago, managing partner of Heidrick & Struggles in Spain.

The boards of European companies that fluctuate on the stock market are looking for experts who can help manage the new risks facing organizations in the midst of a pandemic.

Anticipating them is the maximum.

Hence, already in 2019 half of the new seats have been filled by financial profiles, whether they come from the services, banking or venture capital sectors, with an increase of 25% over the previous year.

“Their role is increasingly important for financial supervision and risk supervision”, indicates the

, which also appreciates that the primary requirement of previous experience on boards of directors has been considerably relaxed in new signings (from 76% of 2016 to the current 66%) and that they are increasingly international (39%), "a trend that will continue to strengthen in 2020" because the teleworking that the COVID crisis has imposed means that geographical distances are not a problem, anticipate.

Far from what might be expected, as digital demands have progressed, in the past year the recruitment of counselors with this knowledge has been overshadowed.

Less than a quarter of those signed have these skills, which in 2018 reached 24% of the total (17% in Spain).

In cybersecurity, just 4% (0% in Spain).

Something similar to what has happened to sustainability experts, who barely represent 10% of administrators appointed by European boards and 4% in Spanish, compared to 40% in the United States.

Heidrick & Struggles appreciates that the profiles that are joining the boards of the listed companies this year are more mature (which will raise the average age, which had been cutting, among other things, thanks to women. Now it stands at an average of 56 years old, which in Spain is 58) and experts in successfully leading turbulent times in organizations.

"Diversity is a lower priority" compared to 2019, he says.

Contrary to the baggage in business transformation and change management and, of course, financial skills (cash management, liquidity and restructuring).

A warning that gender equality at the highest level of European organizations is not guaranteed even by quotas.

Priorities under review

During the pandemic the priorities of the boards of directors have changed.

Its focus is on ensuring business sustainability, which implies a strategic change to face a new future, according to the vice president of Adolfo Domínguez, Maite Aranzabal.

Digital transformation and talent, in addition to finances, are the crucial areas.

“The councils are checking a lot of things.

The risk map, the strategy ... ”, says the counselor Laura González Molero, who points to cybersecurity and digitization among the main risks.