Women still underrepresented in listed firms

MANILA, Philippines — Women remain underrepresented in the board of publicly listed companies (PLCs) despite seeing an improvement in recent years, according to a study by the Philippine Business Coalition for Women Empowerment (PBCWE).

The study titled “Census on Women in Leadership Roles in Philippine Publicly Listed Companies” revealed that the number of women in executive leadership teams (ELTs) and in the board of directors has increased from 2020 to 2022.

It said that women now comprise 40 percent of ELTs in Philippine PLCs, with the number of female CEOs also seeing a gradual rise.

From only 10 percent in 2020, the percentage of women CEOs in Philippine PLCs improved to 13 percent in 2022.

The study showed that majority of women CEOs are from the services sector, followed by the industrial and property sectors.

However, the study found that women remain underrepresented in Philippine PLCs, particularly in line roles, board of directors and the C-suite.

While there has been progress, the report said that many women in ELTs continue to occupy functional or support roles.

Data from the last three years indicated an improvement in the representation of women in line or operational roles, which are critical for career advancement to top leadership positions.

At the board level, the study showed that the percentage of seats held by women continued to increase, rising to 21 percent in 2022 from 18 percent in 2020.

It also found that large companies tend to have more balanced ELTs compared to small and medium companies, with 43 percent of large firms having balanced ELTs in 2022.

Further, the report said that most PLCs have broad diversity policies, but these need to be complemented by concrete targets in order to be measured and ultimately achieved.

Only two percent of large firms and none of the small and medium-sized firms have set specific gender diversity targets, the study found.

Overall, the report highlights the critical role that gender diversity plays in the corporate leadership landscape of the Philippines.

“Gender diversity and women’s representation should be at the core of PLC’s business agenda. The sooner policies are put into place combined with decisive action and adequate resources, the earlier they can realize the benefits of the business case for gender diversity,” it said.

Ma. Aurora Geotina-Garcia, governing council chairperson at PBCWE, said the study conducted in partnership with WR Numero Research is more than just a report as it serves as a call to action for the Philippine business community to embrace gender equality as a driver of sustainable growth.

The study calls on PLCs to invest in mentorship and succession planning programs, set gender targets in ELTS and board of directors as well as build a gender inclusive culture.

“It’s evident that women remain under-represented in ELTs and boards and we still have a long way to go,” Securities and Exchange Commission commissioner Javey Paul Francisco said.

“So what are we going to do to turn things around? As a key player in fostering a dynamic and sustainable capital market and empowering the business sector, we at the SEC are uniquely positioned to lead by example. We are committed to implement policies that enhance corporate governance and champion gender equality, ensuring that our actions contribute to a more equitable and effective business environment,” he said.

The report comes at a time as the SEC revises its guidelines to transition from a “comply-or-explain” approach to a mandatory reporting regime on sustainability and gender data.

The SEC’s current reporting template, based on the Global Reporting Initiative standards, already mandates the disclosure of gender-related data under various categories, including employee data, benefits and diversity.

Through these, the commission aims to embed gender reporting into the business culture of Philippine PLCs, making it an integral part of their sustainability strategies.

“As we reflect on the progress we’ve made and the challenges that lie ahead, it’s clear that our journey towards gender equality is far from over,” Francisco said.

“Our vision is a future where gender equality is a given; where it is not just a matter of social justice but rather a strategic necessity and a smart business move leading to greater employee retention, enhanced creativity, and overall better business outcomes,” he said.

“Gender diversity and women’s representation should be at the core of publicly listed companies’ business agenda. The sooner policies are put into place combined with decisive action and adequate resources, the earlier they can realize the benefits of the business case for gender diversity.”