Forty-four per cent of European financial services investors state that gender diversity in the boardroom significantly influences their decision to invest in a financial services company, compared to just 16% who say it does not influence their decision at all.
All European financial services businesses monitored have female representation at boardroom level and the current gender split of board members across all businesses stands at 58% male and 42% female. This is a five-percentage point rise in the share of female board members from June 2022, when the gender split stood at 63% male and 37% female.
The average board tenure for female directors is 54 months, down from 55 months in June’s report; the average board tenure for men is 66 months, up from 65 months in June. The average age of female board directors is 57, marginally younger than their male counterparts, who have an average age of 60.
Gender diversity is highest across bank and insurance boards, where 43% of board members are female and 57% male. Gender diversity is lowest among boards at wealth and asset management firms, where the gender split stands at 40% female and 60% male, although, this is still in scope of incoming European gender diversity regulation.
Across Europe, boards and company management are taking clear steps to increase diversity across a range of measures. Achieving greater gender balance and ensuring that boardrooms reflect the diversity of the customers and societies they serve is a work in progress, but leaders across the financial sector are driving change. Progressive businesses are anticipating regulation, and view diversity as a strategic priority, understanding that more diverse views, backgrounds and experience play a role in identifying and responding to risks, and ultimately create more effective boards.
European financial services firms are stepping up their efforts to appoint board members with this expertise across sectors, yet, despite progress, wealth and asset management firms and insurers continue to lag the banking sector.
Female board directors for financial institutions are far more likely to have professional experience in sustainability than their male counterparts according to the EY Boardroom Monitor. While the current gender split across financial services boardrooms stands at 58% male and 42% female, 72% of board directors with experience in sustainability are female.