Key Highlights:
- Women represent 36% of board directors at S&P/TSX Composite-listed companies in Canada, with a trajectory towards achieving gender parity by 2030.
- The CIBC analysis indicates a significant improvement in gender diversity on TSX company boards over the past decade.
- Despite progress, women remain underrepresented in management positions, highlighting ongoing challenges in achieving workplace equality.
- Utilities lead in female board representation, while healthcare lags behind with the lowest representation of women directors.
- Companies with higher gender diversity tend to outperform those with lower diversity on a total return basis, according to CIBC’s findings.
A recent analysis by CIBC reveals that women account for 36% of board directors at S&P/TSX Composite-listed companies in Canada, marking a significant improvement over the past decade. According to the report, this progress puts Canada on track to achieve gender parity on corporate boards before 2030.
CIBC Capital Markets’ research report indicates that the representation of women on TSX company boards has steadily increased, with 36% of board members being female as of 2023. This figure surpasses the gender diversity seen in the S&P 500, where women comprise 33% of all board members.
While Canada’s corporate boards are inching closer to gender parity, the report emphasizes that there is still work to be done. However, at the current rate of improvement, CIBC expects Canada to achieve gender balance at the board level within the next decade.
Despite the progress, the Canadian Chamber of Commerce highlights that women continue to be underrepresented in management positions, with only 35% occupying such roles. According to the Chamber’s projections, achieving equal representation in the workforce may not occur until 2129 if current trends persist.
Among the sectors on the TSX, utilities lead the way in female representation on boards, with 41% of directors being women. Other sectors, such as financials and consumer staples, have also seen significant increases in gender diversity since 2012.
However, healthcare remains the sector with the lowest representation of women on boards, with only 28% of directors being female in 2023. Despite this, CIBC’s analysis suggests that companies with higher levels of gender diversity tend to outperform those with lower diversity on a total return basis.
While progress has been made in increasing gender diversity on Canadian corporate boards, there is still room for improvement. The findings underscore the importance of continued efforts to promote inclusivity and diversity in the workplace.