The Singular Challenge of One Woman Directors

In the nearly ten years since the Securities and Exchange Board of India (SEBI) made it mandatory for listed companies to have at least one woman director on their boards, there has been a notable increase in women's representation on Indian corporate boards. According to an EY report from October 2022, women's representation has tripled from 6 percent in 2013 to 18 percent in 2022. However, despite these gains, the situation reveals a nuanced picture that goes beyond the numbers.

A closer examination indicates that a significant number of boards have just one woman director, with about 60 percent of the Nifty 500 companies adhering to the bare minimum mandated by law. Less than 5 percent of these companies have women as chairpersons, and only nine out of the Nifty 500 have achieved 50 percent women's representation on their boards.

Vinita Bali, former MD & CEO of Britannia Industries, notes that she initially found herself as the lone woman independent director in boardrooms. However, she acknowledges positive changes, attributing it in part to the diversity-focused boards she has been a part of, such as Titan, CRISIL, and Syngene.

Despite the prevalence of what is termed as 'golden skirts'—a small set of distinguished women circulating across multiple board positions—the situation in India appears better than some other countries. For instance, in Norway, women are known to hold 25-35 directorships each. This variance can be credited to the Companies Act, 2013, which limits the maximum number of directorships an individual can hold at a given time, preventing excessive concentration.

The 2022 EY report reveals that 605 women hold 803 board positions in Nifty 500 firms. This concentration highlights the need for a more diverse pool of women in leadership positions. Pallavi Shroff, Managing Partner of legal firm Shardul Amarchand Mangaldas, emphasizes the importance of recognizing that younger women have much to offer as directors. While she holds five directorships, she challenges the notion that a few tried and tested names should dominate boardrooms. Radhika Gupta, MD & CEO of Edelweiss Asset Management, calls for widening the net in terms of women in the workforce rather than merely focusing on board representation.

As India continues to progress in achieving gender diversity in corporate leadership, the spotlight remains on encouraging a more inclusive approach that goes beyond meeting the minimum regulatory requirements. The journey towards true gender equality involves creating opportunities for a broader spectrum of talented women and fostering a culture that values diversity in all aspects of corporate governance.