Did you know that listed companies face greater scrutiny on the make-up of their boards and senior management teams? A discussion paper released by the Australian Stock Exchange (ASX) states that most organisations will have to formulate a diversity policy from July 1st this year. They will also have to show how the intend to respond to the recommendations contained in the corporate guidelines.
Juliet Bourke, a partner at Aequus Partners, says these changes to the guidelines will have a significant impact on how boards and senior managers are recruited. She says the gender imbalance is just symptomatic of a broader question of diversity in our businesses and points to research showing that a broader mix of skills and experience provides a better return on investment. So it’s an issue for shareholders too, who will soon be able to see more about the make-up of the companies they invest in.