Vital insights for boards from national gender pay gap data
Governance Institute of Australia is calling on boards and directors to lead by example in hiring women to leadership and board positions to reduce the gender pay gap.
According to the Workplace Gender Equality Agency (WGEA) data, of the almost 5000 Australian businesses required to report, 26 per cent don’t have any women board members.
Nineteen per cent of chairs are women, while women make up 34 per cent of board positions. A mere quarter of boards are gender balanced.
Governance Institute CEO Megan Motto says the data shows a clear link between the number of women in leadership and board roles, and a smaller gender pay gap, regardless of CEO and Director remuneration, which has not yet been included in the current reporting.
“What gets measured gets done, and this data should motivate boards, directors and executive leadership to take action if their organisation is lagging behind,” Ms Motto said.
“Directors, as custodians of organisational governance and strategy, play a pivotal role in addressing and reporting on gender pay gaps.”
Governance Institute of Australia believes that by understanding and addressing gender pay disparities, boards can enhance whole of organisation good governance.
Ms Motto said boards hold the ultimate responsibility for overseeing performance, including matters of diversity, equity, and inclusion.
“This type of reporting should not be merely an exercise in compliance, but a strategic, moral and ethical imperative aligned with broader corporate objectives,” Ms Motto said.
“By prioritising transparency, accountability, action and a culture of equality, directors can unlock the full potential of their workforce, and contribute to a more inclusive society.”