In a significant shift toward gender diversity, the landscape of boardrooms for companies listed on the National Stock Exchange (NSE) has seen a remarkable increase in female representation. From just 5% in 2013, the proportion of women directors has surged to over 20% by 2025, marking a fourfold increase. This growth is set against a backdrop of a 45% rise in the total number of directors, showcasing the evolving corporate environment. However, despite these advancements, women continue to face challenges in reaching top leadership roles.

Progress in Female Representation

According to a recent report, the number of directors within NSE-listed companies has expanded from 11,518 in March 2013 to 16,694 today. Within this timeframe, the count of women directors has leaped from 569 to an impressive 3,479. This upward trend highlights a growing commitment to diversity in corporate governance.

• Women Directors: Increased from 569 to 3,479
• Total Directors: Grew from 11,518 to 16,694

Regulatory Impact on Diversity

Regulatory measures have played a crucial role in promoting female representation on boards. Currently, a staggering 97% of the 2,133 NSE-listed firms include at least one woman on their board, a significant jump from just 30.8% in 2013. Moreover, women now occupy 28% of the 8,472 independent director positions, a marked increase from 17% in 2018. Notably, since April 1, 2019, companies in the top 500 by market capitalization have been mandated to include at least one woman as an independent director.

Leadership Gaps Persist

Despite these positive trends, the climb to leadership remains steep for women. Currently, only 6% of companies have a female chairperson, with 57 of these belonging to promoter groups. Furthermore, only 15% of companies have a woman leading the audit committee, up from 9% as of March 2020.

Age and Compensation Disparities

The report also sheds light on the demographics of women in these roles. On average, female independent directors are seven years younger than their male counterparts, while non-independent female directors are four years younger. In terms of compensation, a stark disparity exists: male executive directors earn a median salary of Rs 1.14 crore, which is 62% higher than the Rs 71 lakh median for women.

Conclusion

The rise in female representation on boards of NSE-listed companies is a promising development for gender equality in corporate leadership. However, the journey toward achieving true parity, especially in executive roles, is far from complete. Continued efforts and monitoring will be essential to ensure that these gains translate into meaningful leadership opportunities for women in the corporate sphere.

For further insights on corporate governance and diversity, consider exploring additional resources on this topic.