Partner Article

Quotas boosting board women - but at what cost?

Krystyna Nowak, Managing Director, Board Practice at Norman Broadbent – the executive search firm, comments on the news that introducing quotas to boost the number of women in corporate boardrooms is working, according to a new global index from Catalyst:

“Introducing quotas to boost the number of women in corporate boardrooms may be working, but at what cost? Whilst we agree that there should be more females represented on UK boards, rather than rushing such an important process, firms should focus on the cultural fit and overall diversity of the board composition to achieve the highest quality results.

In some cases, quotas can also produce unintended consequences. Some women now serve on more than six boards in the countries that have quotas, which obviously does not sit well with the increasing time commitment needed for these roles. In addition, the senior executive pipeline of women is being depleted, as those in their late 30s, 40s and 50s now have an opportunity to leave executive life and develop their portfolios by accepting these multiple appointments.

There is also another factor to consider. Although it is difficult to measure, could the use of quotas affect the respect for women on the Board? And women’s self-worth? Even though quotas may be boosting the number of women in corporate boardrooms – which is excellent news – firms need to consider factors like these, and decide whether numbers alone are enough to guarantee excellence.“

This was posted in Bdaily's Members' News section by Norman Broadbent .