For the first time, and with a notable increase, female presence in Technology and Telecommunications reaches 37.18% parity in 2021, which places this sector as the most equal in the continuous market. These figures come from the data extracted from the latest edition of the report ‘Women on the Boards of Directors of Listed Companies,‘ prepared annually by ATREVIA and IESE. The report was presented in a hybrid format this morning by the CEO of ATREVIA Spain, Asunción Soriano, and IESE professor Nuria Chinchilla, Chair of Carmina Roca and Rafael Pich-Aguilera Women in Leadership.
Among the most important conclusions of the report, which includes the 5th Radiography of the entire Continuous Market and the 10th Report on Women in the IBEX-35 and covers a total of 122 companies in this edition, is that the representation of women in Spanish continuous market companies increased by 21 women, 3 percentage points, in 2021 to 352 female directors. However, it is vital to note that this increase stood at 28.78% in the previous year.
The most significant push towards parity, for yet another year, was made by IBEX-35 companies, where the presence of women increased by ten more women, 2.77 percentage points, to 149 seats, reaching a parity rate of 33.94%.
Meanwhile, non-IBEX-35 companies continued to make moderate and insufficient progress. Although female representation rose by 2,97 percentage points, it remained at 25.9%, falling short of the 30% recommended by the National Securities Market Commission (CNMV).
The increase of women’s presence on the Boards of Directors of the IBEX-35 contrasts, however, with the adequate power of women in Management Committees, the decision-making bodies, where representation stands at just 18.32%.
The Average Number of Female Directors
The almost 3-point increase in female representation in the IBEX-35 means that there are now 24 companies with four and five female directors (12 with 4 and 12 with 5) and four companies with six female directors. Likewise, the number of companies with one (17 companies) or no (9 companies) female directors has dropped from 27.6% to 21.3%, falling from 35 to 26.
The average number of female directors remains at four, although there has been a notable increase in the number of companies with five female directors. Therefore, for yet another year, the average for the entire continuum remains at three, even though most of the remaining 87 companies have two female directors per company. At this rate, 30% parity will be reached by 2022.
Regarding the distribution of the types of female directors, independent female directors represent 71.22% of the total number of directors, an increase of three percentage points compared to 2020. The ceiling for female executive directors remains at 4%. There are still five female executives in the IBEX and eight in the continuous market, amounting to 3.98%. The representation of female proprietary directors decreased by half a percentage point to 22.5%, while the number of external female directors decreased by 2.5 percentage points to almost 3% of the continuous market as a whole.
Overview and Outlook
Over the last twelve years, IBEX-35 boards have gone from having 53 to 149 women members, which means a total of 96 more female directors. For the first time, in 2020, all the selected listed companies had at least one woman on their boards, reaching the desired average of four women directors per company, and in 2021 there was a further increase of 10 more seats, for a total of 149.
The almost three-point increase demonstrates the selective index’s commitment to parity given that, although the number of seats has been reduced by seven, ten new female directors have been added. Meanwhile, in the rest of the continuum, another 11 have been added, nine less than in 2020.
The average weight of female directors within the governing bodies of listed companies has risen by 13.31 points since 2015 (the year the CNMV set the target of 30% parity by 2020) and now stands at 28.72%. At the current rate of progression (+2.94%), the 30% parity would be reached in 2023, at a time when the new Good Governance Code calls for attaining 40% as early as 2022. Companies outside the selective index may even be postponed until 2024. In the case of the IBEX-35, it would be enough for companies to incorporate one more woman to achieve the 40% target.
According to the CEO of ATREVIA, Asun Soriano, “the increase in parity on the Boards of Directors of Spanish companies is a growing tendency, as has been shown in recent years. However, now efforts must be made to ensure that this female presence is converted into executive power, especially in the context of the transformation that companies are undergoing today. Diversity can provide a different perspective that helps us promote new ways of analyzing and facing challenges.”
According to IESE professor (PhD) Nuria Chinchilla, “the value that women bring to boards of directors is already undeniable. There is no going backward, and companies are becoming aware of this fact little by little. Nevertheless, it is still essential to prepare reports and studies that provide data showing the reality of companies that serve as an example and benchmark for increasing female representation on their boards.”
Minimal Presence of Women in the Highest Governing Bodies
Although the presence of women on the Boards of Directors of the selective index is increasing every year, representation in the top executive positions of companies is minimal. Of the 35 presidencies of the IBEX-35, 33 are held by men (94.2%) and two by women, which represents only 5.7%. In addition, there are 27 CEOs, of which 26 are men, and one is a woman, which translates into 3.7%. There are two companies where both positions are held by a single member: Aena and Iberdrola. There are also companies with no CEO: Acciona, ACS, Arcelormittal, Indra, Mapfre, Melia Hotels, Naturgy, Pharma Mar, and Solaria.
Among presidents, 23 are executives, and 12 are external, independent, and/or proprietary. It should be noted that both Ana Botín and Beatriz Corredor are executives.
Significant Female Influence in Key Responsibilities
Although most presidencies are still in the hands of men, women are gradually making their way onto committees, occupying increasingly more essential responsibilities. In 2021, there were 120 presidencies, of which 75 were held by men and 45 by women, representing 37.5% female representation. In turn, we found 146 committees, of which 93 were occupied by men and 53 by women, which translates into a 36.3% female presence.
The committee with the most women continues to be the Sustainability, Environment, and Good Governance Committee, the only one with more women than men. Apart from this, the Appointments and Remuneration Committees are also very evenly distributed, with 15 women and 17 men and 16 women and 18 men respectively.
These are followed by significant progress in Risks and Compliance, with two women and four men reaching 33.33% parity, compared to the minimal 11.11% in 2020, when there was only one woman and eight men. At the other extreme is the Audit and Control sector, which not only has failed to make progress but has regressed considerably. In 2020, female representation was 42.85%, with 15 women and 20 men. Unfortunately, in 2021 its weight fell to 21.42%, including only six women, compared to 22 men.
One area that has hardly changed is Executives and Delegates, as it still has one female executive and 19 men. The Innovation, Technology, and Security area has barely been modified. Representation continues to be non-existent, with five male presidents compared to 6 in 2020.
Committed and Change-Driving Companies
Over the four years that this study has analyzed and evaluated all the companies in the continuous market, many of the listed companies, especially the majority of those belonging to the IBEX-35, have shown an improvement in the incorporation of women on their Boards or regarding retaining the number of female directors.
Notable companies that have made the most significant effort to achieve parity in the last year, with the increasing inclusion of female directors, starting from the worst data in this area in the period under study, include: Amper, which has advanced from 0 to 37.50%, with three women; Audax Renovables, which has gone from 0 to 33.33%, incorporating two women; Alantra, which without changing the number of members brings together three women, achieving a female representation of 33.33%; Deoleo, which reduced the number of members, being two women, which represents a weight of 33.33%; and Prisa, which without changing the composition of its board, reaches 35.71% by having five women.
There is little change in companies that have shown greater consistency in their commitment to parity compared to 2020. Adolfo Domínguez is the firm whose female presence has increased the most since 2017, reporting 66.67% last year. It is followed by Ezentis, with 62.50%. Realia achieves a balance by having three men and three women, thus reaching 50%, the same percentage as Red Eléctrica Española (REE). Meanwhile, Ebro Foods has increased the number of members in line with the number of women, thereby increasing by 1.2 percentage points to 42.86%, a percentage shared with Reno de Medici, who has not changed the number of its members nor the number of women since 2017.
Technology, Energy and Finance, the Most Evenly Distributed Sectors
The improvement in parity in the technology sector is notable and, for the first time, it has become the leader in female representation with 37.18%. Therefore, it surpasses the financial sector (33.71%) and the energy sector (34.59%) in terms of the number of women.
The female presence in the oil and energy sector has increased considerably in the rest of the continuum, as its firms have three women per company. As a result, the total average is four female directors, and the percentage of women in this sector is 34.59%.
As for real estate services, it continues to be the sector with the least parity and the only one where women’s percentage has decreased. The average number of women per board remains at two, but the total female presence in the sector has reduced by 0.76 tenths of a percentage point to 22.90%.
Europeans, the Majority of Foreign Women
The weight of female foreign directors grew by four women in 2021, bringing the total to 36, representing 24.6% compared to 75.8% for Spanish women. European women continue to dominate this group, especially British women, with 16.60%, followed by French women, with 11.10%. Ibero-American, Canadian, and U.S. women account for 19.40%.
The Presence of Women on Management Committees
For the first time, this report includes the status of the presence of women on IBEX-35 companies’ Management Committees. In this regard, it is relevant to point out that the main conclusion is that female representation in these bodies of effective power, including chairwomen and CEOs, is only 18.32%, which contrasts with the 33.94% of women on the Boards of Directors.
For Nuria Chinchilla, “the still low presence of women on management committees may be due to glass ceilings (imposed by the company itself) or concrete ceilings (those that women impose on themselves).”
The Automotive and Transportation, Financial Services and Technology, Media, and Telecommunications sectors have the most women on their Executive Committees, while the Construction, Infrastructure, and Products sector has the fewest.
