Canada Still Lags in Board Diversity
“The gender diversity of Canada's corporate boardrooms continues to lag that of the U.S., and "stronger headway" needs to be made in the country's resource sectors and small firms, a Toronto-Dominion Bank economist says in a new report.There has been "noteworthy progress" since the country's largest securities regulator in 2015 implemented a so-called comply-or-explain rule aimed at increasing board diversity, but the S&P/TSX still shows lower aggregate female diversity at 24 per cent, compared to 25 per cent on the S&P 500, said TD's Beata Caranci”
“The latest data gathered from Canadian securities regulators shows that among the 648 issuers, 15 per cent of board seats were held by women, up from 11 per cent four years earlier.”
“Caranci says the comply-or-explain policy has been ‘highly effective in a number of areas,’ such as an increase in the share of women on boards across all industries and firm sizes and a decline in the share of boards with zero women. However, corporate Canada's journey is not yet complete, as most publicly traded companies fall short of the important minimum 30 per cent threshold that constitutes critical mass, she wrote.”
“Smaller companies have slower board seat turnover, and less opportunities to change the status quo, and are more likely to cite limited resources for candidate searches. ‘I have some sympathy on that part, that you're going to get less progress there,’ Caranci said in an interview. ‘I have a little less sympathy when there are things cited about there not being quite enough women, or a supply side issue that I'm not quite buying … There are so many organizations showcasing board-ready women.’"
CBC News, March 28, 2019: “Canada lags behind the U.S. on putting women in corporate boardrooms”
TD Economics, March 27, 2019: Report: Corporate Canada Is Getting On Board, by Beata Caranci, Chief Economist, Leslie Preston, Senior Economist (12 pages, PDF)