AIDC Chairwoman Elizabeth Proust AO Discusses Gender Diversity

Australian Institute of Company Directors chairwoman Elizabeth Proust AO has made it her mission to see greater gender diversity on company boards.

In her time as chairwoman, the AICD has set a clear gender diversity target for ASX200-listed companies – that 30 per cent of all boards consist of women by 2018.

“There are two reasons we set it at 30 per cent – it was achievable and more importantly that’s the figure that research shows makes a difference,” she said.

“At that level it makes a difference to the quality of the discussion around the board table.”

Only 74 of the 200 companies have reached the target, however Ms Proust said she was “cautiously buoyed” by 2017.

Over the year, 47 per cent of board appointments were women – a 10 per cent rise from 2016.

“If you want an organisation that continues to grow and prosper, then you need genuine diversity and this is beyond gender as well,” she said.

“You need people who think differently and … the best boards are companies which have gender and other diversity.”

Ms Proust will be in Launceston on March 14 as a part of the AICD’s Leaders’ Edge Lunch at the Grand Chancellor.

Ms Proust, who is also Nestle Australia chairwoman and the Bank of Melbourne advisory board chairwoman, will speak about how regional companies can future-proof their operation.

“It will apply to disruption in the technology space and in changing stakeholder and community expectations,” she said.

“It’s important for management to also understand the board’s role in culture and a board’s role in innovation.”

She said one of the key themes will be diversity, however there are a number of other challenges regional companies face.

“People [from Tasmania] mention that school retention rates are not as good, and there are issues around access to skills and access to capital in the regions versus in capital cities,” she said.

One issue that often comes up, according to Ms Proust, is whether there should be company enforced gender targets to improve diversity.

While some state governments have enforced quotas in the public sector, she does not believe the private sector should be bound by mandated targets.

“My personal preference would be for advocacy and mentoring of woman, and ensuring there is a good supply to take on these roles rather than quotas,” she said.

“But I suspect if companies don’t move [to improve diversity], then the government will [through legislation].”