Not enough black, women directors

03 March 2010 - 07:15
By SAPA

Blacks and women continue to be grossly under-represented in all directorships and top executive leadership positions of JSE-listed companies, according to a survey released on Tuesday by Business Unity SA (Busa).

The study showed that: - of 269 chief executive officer positions, blacks occupied nine percent and whites 91 percent; - females accounted for three percent and males 97 percent of 219 chief finance officer positions; - females accounted for seven percent and males 93 percent of 245 non-executive chairman positions; and - females made up six percent and males 94 percent of 1664 non-executive director positions.

Busa said that as many as 533 executive and non-executive directors were expected to retire from JSE-listed companies in the next five years.

While Blacks constituted 87 percent of the economically active population, their representation was clearly nowhere near this percentage in both executive and non-executive directorship positions, it said.

"These findings have confirmed the negative picture that has been painted year on year by the Commission on Employment Equity.

"Despite the fact that the number of black and female Chartered

Accountants increased over the years, 92 percent of CFOs were found to be white."

This, Busa said, painted a bleak future for potential black chief executive officers, most of whom came from the ranks of chief finance officers.

"The anticipated retirement of over 500 directors in the next five years provides a golden opportunity for expediting the pace of transformation in the upper echelons of corporate SA," Busa said.

It recommended that companies develop and implement measures to overcome under-representation of blacks and women in directorship and top executive leadership positions.

"One possible strategy would be for companies to identify all directors that would be retiring at least 18 months before their retirement date.

"Skilled and knowledgeable blacks and women who might lack the requisite board experience should be identified as "shadow directors" (not in perpetuity) to replace retiring directors."

Busa said retiring directors would then have a period of at a least a year in which to mentor "shadow directors" on the nuts and bolts of the board and other company information before handing over the reins.

"This is just one possible strategy for companies to develop and implement over the short, medium and long term."

Busa anticipated that the implementation of the recommendations outlined in the report would lay the foundation to ensure that the next generation of leaders of corporate South Africa closely resembled the demographic profile of the country's economically active population of South Africa.

This would be in line with the twin government policies of employment equity and broad-based black economic empowerment.

"We also impress upon the recently established Broad-Based Black Economic Empowerment Council to promote a more inclusive economy by accelerating the speed of transformation in support of women, youth and people with disabilities," Busa said.

Image: thefrisky.com

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