March 2014
"Boardroom Transformation & the Woman Chairman"
Gillian Wilmot: Remuneration Chair & NED NISA & Elexon, IDAB & Finalist in the 2014 NED Awards
"Most commentators agree on the need to improve the executive pipeline of senior women to develop the next generation of women CEO's. Some commentators have expressed concern about the greater proportion of women appointed to NED roles rather than Executive Director roles.
However the Chairman role has not been focused on to the same extent. Yet this is the role that sets the tone and culture in the Boardroom and controls the appointments process as both Board Chair and Chair of the Nominations committee. More women as Chairmen will lead to a more diverse senior executive team and a more meritocratic executive pipeline. The CBI has now advocated that British companies set targets to boost the number of women in senior roles so let’s set targets for women chairman as well. 50% would be a great target.
The culture of the Boardroom filters down through the organisation and a diverse and balanced Board acts both as a role model and sets the business agenda. The Chairman has a key role in working with the CEO and the Executive team as well as NED colleagues on strategy, succession planning and key decisions that directly impact the executive pipeline.
There has been a noticeable improvement in holding the Executive to account and the proportionality of Executive pay where women NED's Chair the Board or the Remuneration Committee. There is considerable evidence that women as Board Chairs and Remuneration Chairs are doing a highly effective job of holding the executive to account, managing performance and controlling executive pay.
So more women Chairmen will further improve business performance and accountability.
So 50% would be great news for shareholders."