However, achieving gender parity across all listed companies would require approximately 60 additional women board members. On the First North exchange, which lists smaller growth companies, women constitute 25% of board members.
In large-cap companies, the percentage of women on boards slightly decreased by 1% to 36%. Medium-cap companies maintained last year’s record level of 33%, while small-cap companies saw an increase of two percentage points, reaching 30%. Women accounted for 42% of new board appointments this year.
“The decrease in large-cap companies was minimal, just fractions of a percentage point, but it rounded down. A particularly positive development was seen in small-cap companies, where the percentage of women on boards has increased by six percentage points over the past three years,” noted Ville Kajala, Senior Advisor at the Finland Chamber of Commerce.
Proposed Changes and Gender Balance Goals
There is a proposed amendment to the governance code requiring equal representation of men and women on company boards. This requirement is also suggested to be enshrined in law for the largest publicly traded companies, as part of the national implementation of the quota directive. The aim is to achieve gender parity by summer 2026, necessitating about 60 more women on boards.
“With effectively only two annual general meetings left to achieve this, many companies need just one additional female board member to meet the requirement. While gender balance seems achievable, board composition is influenced by various factors beyond gender. Skills, experience, and perspectives must complement each other, which can take time to identify,” Kajala explained.
The preparation process for board composition and the gender balance of the nominating committees also significantly impact the outcomes. Boards with at least one woman on the nominating committee tend to have higher average female representation.
Variations in Committee Gender Composition
The study highlighted significant disparities in the gender composition of various board committees. Women make up 33% of all committee members, with the highest representation in audit committees at 43%. However, women only account for 29% of members in remuneration committees.
Despite these advances, the gender balance in bodies preparing board nominations remains low, with women making up 21% of nomination committee members and only 12% of shareholder nomination board members.
Kajala pointed out that committee assignments often reflect the backgrounds and experiences of the board members. “Women are overrepresented in audit committees and underrepresented in nomination committees, reflecting their professional backgrounds more often in support functions rather than in CEO or business leadership roles,” he said.
First North Companies Lag Behind
The report also assessed women's representation on the boards of First North companies for the second time. Women continue to hold 25% of board positions in these companies, with 19 having gender-balanced boards and nine with all-male boards.
“First North is less regulated and typically includes smaller, entrepreneur-driven growth companies. This is reflected in their governance structures. I believe that the push for gender balance in listed companies will gradually extend to First North companies,” said Kajala.
Promoting Female Leadership
The Finland Chamber of Commerce has long advocated for female leadership through self-regulation. Since 2012, they have organized a mentoring program for female leaders. With the tenth edition launching in fall 2024, the program will have supported over 400 female executives.
As the push for gender parity continues, these initiatives are crucial for maintaining momentum and ensuring that progress in board diversity translates into broader corporate governance improvements.
HT
