Women in the Boardroom 2019 Deloitte China Center for ......Women in the Boardroom 2019 jointly published by Deloitte China Center for Corporate Governance and Deloitte Research aims

Women in the Boardroom 2019Deloitte China Center for Corporate GovernanceDeloitte Research

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2019德勤中国上市公司女性董事报告 | 结语

Preface 1

Methodology and key takeaways 2

Regulations 4

Women representation on board 5

Face to face with women directors 8

Conclusion 15

Appendix 16

Editorial Committee 18

Researchers and contributors 19

Contacts 19

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Women in the Boardroom 2019 | Preface

PrefaceAs an important element of corporate governance, board diversity of public companies is an issue of increasing concern among regulators, businesses and research institutions, involving professional experience, education, gender and age, etc. Among these dimensions, gender diversity mainly means increasing percentage of women in the boardroom. Similarly, the topic of female executives and leadership has received a lot of attention.

Although many studies suggest that the percentage of board and executive positions held by women is positively correlated to business performance, countries and territories in Asia including Mainland China and Hong Kong are slow in the progress of board diversity, lagging far behind Europe and the US.

Women in the Boardroom Survey 2019 by Deloitte China Center for Corporate Governance discusses female board directors from the perspectives of selection, duty performance, leadership and career development, based on a dataset covering women directors in Mainland China and Hong Kong listed companies and interviews with women directors from politics, business and academia. Three women directors interviewed have achieved great career success, participating in a wide range of governance activities of public companies as external independent non-executive directors and taking the role of chairman or independent director in audit, risk, compensation or nomination committee. We would like to extend our gratitude to them for their support and sharing.

Women in the Boardroom 2019 jointly published by Deloitte China Center for Corporate Governance and Deloitte Research aims to stimulate reflection on the duty performance of women directors and awareness of the importance of gender diversity in the boardroom, to drive deeper involvement of women in board activities and improve women leadership.

David Wu Vice ChairmanChina Center for Corporate Governance LeaderDeloitte China

David Lung National Audit Market Strategy Committee LeaderChina Center for Corporate Governance MemberDeloitte China

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Women in the Boardroom 2019 | Methodology and key takeaways

MethodologyWomen directors in the report are from Mainland China and Hong Kong listed companies, including those in the position of executive director and independent non-executive director.

The overall sample size of 220 public companies consists of 150 from Mainland China including China Securities 100 Index and ChiNext 50 Index constituents and 70 from Hong Kong including 50 Hang Seng Index constituents and 20 companies that top the list of market caps on GEM (market caps as of 31 December 2018). China Securities 100 Index and Hang Seng Index constituents represent the most influential companies with high market caps; and GEM-listed companies include start-ups, small- and medium-sized enterprises and high-tech businesses. Board data in the survey are collected from 2018 annual reports or corporate announcements.

Methodology and key takeawaysIndicator explanationSenior leadership:senior management in the annual reports of listed companies including CEO and executives directly reporting to CEO.

Board positions held by women: the proportion of board positions held by women. A female director can be the independent director of more than one company and take multiple board positions.

The number of women directors: the number of women directors on board. A female director can be the independent director of multiple companies. The number of women directors is usually smaller than that of board positions held by women.

Professional committees: public companies usually have five professional committees under the board, i.e. strategy, nomination, compensation, audit and risk committees. A small proportion of companies may have established some other committees depending the place where they go public, such as investment, related-party transaction, project monitoring and sustainable development committees.

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Women in the Boardroom 2019 | Methodology and key takeaways

Key takeaways

Topic Key information

Regulations Mainland China has not released any specific regulations on board diversity including gender diversity;

Hong Kong-listed companies are required to disclose policy concerning board diversity.

Women representation on board

Mainland China and Hong Kong listed companies have low women representation on board;

Hong Kong is slightly higher than the Mainland in percentage of women directors;

Technology, media & telecommunications (TMT), finance and consumer industries take the lead in terms of the percentage of female directors;

Committees chaired by women often have high percentage of female directors;

Risk, nomination, compensation and audit committees have higher women representation.

Face to face with independent directors

Higher level of education is the foundation for advancing women leadership;

Stay calm and focused and stick to principles amid inequalities;

Fair competition is important, no need for clear-cut gender quota;

Be ready to devote and prove ourselves and leverage women's advantages;

Female directors are more risk-aware than their male counterparts;

Learn from role models and face up to challenges.

Board positions held by women245

Women directors

Women chairs10.74%

Women directors10.90%

Number of companies surveyed220

Women directors China

Mainland Hong Kong

Percentage of women members in committees

Percentage of female directors

When committees are chaired by women

Top three industries by the percentage of female directors

Women chairs

Audit

Compensation

Nomination

Risk

Strategy

12.50%

33.20%

Consumer9.12%

Financial services12.48%

Technology, media & telecommunications12.50%

12.7

3%

17.0

0%

14.2

2%19

.51% 8.

10%

4.17

%

8.59%

10.2

4%

11.5

8%

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Women in the Boardroom 2019 | Regulations

Mainland ChinaMainland China has not released any specific regulations on gender diversity and the percentage of women directors on board. According to the existing regulatory requirements, directors should have certain professional background, and companies are encouraged to establish specific director selection standards. However, these regulations are less effective than expected, due to lack of clear implementation policies.

Hong KongThe Hong Kong Stock Exchange (HKEX) encourages listed companies to promote board diversity in gender, age, culture, education and professional background.

According to rules about the diversity of independent non-executive directors stipulated in Consultation Conclusions (Consultation Conclusions on Review of the Corporate Governance Code and Related Listing Rules) released by HKEX on 27 July 2018, the board

shall state how the independent non-executive director nominee would contribute to diversity of the board. This provision was escalated into one of the Main Board Listing Rules and took effect on 1 January 2019. It is more stringent than the "Comply or Explain" policy of Australia (companies are expected to comply with regulations on board diversity or explain why not to regulators) and UK' s board diversity policies designed for large public companies only (UK's board diversity policies are not compulsory for small-and medium-sized companies).

HKEX encourages board diversity, believing board diversity can help companies promote effective decision-making, enhance corporate governance and investor confidence, keep in touch with the concerns and expectations of stakeholders, and enhance corporate reputation. Many studies in recent years suggest that companies with higher board diversity usually have better financial performance.

Regulations

Table: Amendments to Main Board Listing Rules of HKEX, which took effect on 1 January 2019

Board diversity (gender diversity) rules

13.92 The nomination committee (or the board) shall have a policy concerning diversity of board members, and shall disclose the policy on diversity or a summary of the policy in the corporate governance report.

Note: Board diversity will differ according to the circumstances of each issuer. Diversity of board members can be achieved through consideration of a number of factors, including but not limited to gender, age, cultural and educational background, or professional experience. Each issuer should take into account its own business model and specific needs, and disclose the rationale for the factors it uses for this purpose.

Mandatory disclosure requirements

Nomination committee that has a policy concerning board diversity shall disclose the policy or a summary of the policy including any measurable objectives and progress to support policy implementation.

Source: HKEX, Deloitte Research

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Women in the Boardroom 2019 | Women representation on board

Total percentage of female directors remains lowThe total percentage of female directors remains low even in developed countries that advocate gender equality, according to the report published by Deloitte Global Center for Corporate Governance in 2017.

From a global perspective, Europe have the highest percentage of female directors (22.60%); the US is lower (14.20%), and Asia is even lower.

Due to some traditional social ideas, Japan, Korea and some developing Asian countries have low percentage of professional women, therefore Asia' s lower women representation on board than Europe and the US may be understandable.

Among the 220 Mainland and Hong Kong listed companies surveyed, there are 2,247 board seats, among which, 245 seats are taken by women, accounting for 10.90%, less than half of Europe' s in 2017.

Hong Kong' s women representation on board is slightly higher than that of MainlandThe percentage of female directors in Hong Kong and Mainland are 13.32% and 9.63% respectively. Hong Kong has higher women representation on board mainly for two reasons:

HKEX explicitly encourages listed companies to enhance board diversity. It has published regulatory rules to help listed companies promote board diversity including gender diversity. These rules eliminate some barriers for women to enter into the board, increase the opportunities of female executives, professionals, social workers and scholars to get directorships, and help improve women representation on board.

Women representation on board

Figure 1: Percentage of female directors in listed companies

Note: Figure about China is the result of this survey, based on 2017 corporate annual reports. Other data come from Deloitte Global Women in the Boardroom (fifth edition) in 2017.

Moreover, these rules can also improve corporate governance, enhance risk resistance and protect the rights of small- and medium- sized investors. In Mainland, due to the lack of relevant policies, corporate managers improve board diversity mainly based on their understanding or interpretation of diversity, or internal demands. To improve board diversity, companies need the support of more external measures.

In addition, with high percentage of professional women, Hong Kong has high women representation in boardrooms. Two of the three interviewees started their career in

Hong Kong. They are role models of Hong Kong' s professional women. We find three common points in them through interviews: 1) Hong Kong women are well-educated, and many of them are working in government agencies. Hong Kong maintains a high percentage of professional women in Southeast Asia; 2) being confident and independent, and less susceptible to the traditional idea about the role of women, they actively pursue personal development and life value; 3) many Hong Kong family companies are led by women, who add some female elements to corporate management and decision-making processes.

42.00%

40.00%

28.10%

22.60%

20.40%

14.20%

10.14%

4.10%

2.50%Korea

Japan

China

US

Australia

Europe (average)

Italy

France

Norway

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TMT, financial services and consumer industries top the list by the percentage of female directorsCompared with engineering construction industries, service industries are closer to customers, and feminine working models are more common in these industries. The survey found that the percentage of female directors is high in TMT (12.50%), financial services (12.48%) and consumer business (9.12%). The emerging TMT industry has the highest women representation, as young companies in the industry, which are more open-minded and accepting of diversity than traditional industries, are willing to listen to the call of gender equality. By contrast, in traditional industries such as energy, resources & industrials and government & public services, the percentage of female directors is lower. In life sciences and health care industries, requirements on special and professional skills, together with Chinese traditional ideas, have led to rare women talents majoring in relevant subjects. Therefore, these industries don' t have enough female talent reserves and high women representation in boardrooms.

Figure 2: Percentage of women on board by industry

Source: Wind, annual reports, public information and Deloitte research.

Figure 3: Commissions chaired by women have high percentage of female directors

During the interviews, three female directors mentioned women' s self-positioning and career pursuit. The percentage of educated women increases as the society advances. According to the survey, the percentage of female directors in energy, resources & industrials is 8.63%, just lower than that in consumer business. Women working in engineering fields were scarce, but in recent years, women majoring in engineering are increasing. After graduation, they can work in large companies with clear career paths and enough promotion opportunities. We predict that these industries will have more female executives, experts and directors to promote female leadership development.

Professional commissions chaired by women have high percentage of female directorsAccording to the Listed Company Governance Rules released by China Se-curities Regulatory Commission, listed companies' boards should establish audit committee as well as strategy,

nomination, compensation and assess-ment committees as required. Estab-lishment and effective operation of special committees can help the board fulfill responsibilities and improve operation efficiency and quality.

The percentage of female directors in special committees reflects gender diversity in boardrooms. If special committees are led by female chairs, the seats held by female directors would significantly increase.

In the 220 listed companies surveyed, 540 special committees of the board have been identified (including five major committees for nomination, risk, compensation, audit and strategy, and other committees for investment, related transaction and engineering inspection). 58 committees are led by female chairs, accounting for 10.74%. Committees with female chairs have 247 seats, in which, 82 are taken by fe-male directors, accounting for 33.20%, nearly three times of the total percent-age of female directors.

Consumer business

Financial services

Technology, media &

telecommunications

Government & public services

Life sciences & health care

Energy, resources & industrials

12.50% 12.48% 9.12%

8.63% 6.45%7.69%

Male chairs89.26%

Female chairs10.74%

Committees led by female chairs have 247 seats, among them, 82 are held by women, accounting for 33.20%

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Note: In the 220 companies surveyed, there are 41 risk committees, 100 nomination committees, 127 compensation committees, 128 audit committees and 48 strategy committees.01. Percentage of female chairs: the percentage of women chairs in each type of committees, i.e. the number of female chairs/the total number of chairs in

each type of committees;02. Percentage of women directors: the percentage of female directors in each type of committees, i.e. seats taken by female directors/total seats taken by

directors in each type of committees.

Risk, nomination, compensation and audit committees have high women representationAccording to the survey, most female chairs or female directors are from risk, nomination, compensation and audit committees. While strategy committees have the lowest women representation mainly for two reasons:

Risk and audit committees have high professional requirements on directors. Women are more likely to be selected as members of these committees for their career success based on professionalism and rich experience. For example, audit committees often consist of CFOs, accounting professors from universities, audit experts from

accounting firms, etc.; and most seats of risk committees are taken by experienced risk professionals such as risk officers and risk consultants.

In addition, to ensure transparency and independency, most companies require compensation and audit committees to appoint independent directors as the chair (foreign authorities have clear requirements on listed companies, and HKEX also published relevant policies on 1 January, 2019). Besides, as compensation and nomination committees don' t have special requirements on professional qualifications, women could be directors or chairs more easily.

The survey shows that strategy committees have the lowest women representation. Strategy committees usually consist of core board members, who develop long-term development strategies and make major investment decisions. Among the 220 companies surveyed, there are 48 strategy committees, but only two are led by female chairs, accounting for 4.17%. The percentage of seats held by female directors is 8.10%, the lowest among all committees. Female directors don' t have great impact on companies' strategic decisions compared with other special committees.

Table 1: Women representation in special committees of the board

Committee Percentage of female chairs* Percentage of women directors

Risk committee 19.51% 14.22%

Nomination committee 17.00% 11.58%

Compensation committee 10.24% 12.73%

Audit committee 8.59% 12.50%

Strategy committee 4.17% 8.10%

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Women in the Boardroom 2019 | Face to face with women directors

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Diversification of the board of directors benefits both the market and the organizationExternal independent non-executive directors' primary job is to protect the interest of investors and small shareholders. HKEX recently raised the requirements on independent directors to encourage boardroom diversification, which is in line with the expectation from the market and beneficial to revenue generation. Directors from different backgrounds approach issues from varied angles, and decisions based on a combination of views are more likely to win than unilateral decisions.

With people from financial, risk and legal backgrounds, the board can have a more comprehensive assessment of issues including bond issuance, guarantee method, legal clauses and arrive at appropriate plans. The strength of external directors lies not in the specific field per se, but in

Face to face with women directors

Mrs. Rita Fan Public figure in Hong KongHonorary Doctorate in Law from the China University of Political Science and Law,Honorary Doctorates in Social Sciences from the City University of Hong Kong and the University of Hong Kong

There are more female science and technology students than before, and more women executives in big corporations, which shows gender is becoming less important in the workplace. Women are still under-represented, but that will change in future. We would better start from the basics and follow the natural course of things instead of setting clear-cut goals.

In cases of inequality we need to let go of the burden in our heart, hold firm onto our principles and move on with our career.

Dr. Rita Fan is dedicated to serving Hong Kong society. From 1997 to 2008, she served as the president of Provisional Legislative Council and the Legislative Council and is now the local deputy to National People's Congress (NPC) and a member of the NPC standing committee. Since March 2016, she has been serving as the chair of the Board of Management of the Endeavour Education Centre Limited.

She is currently an independent non-executive director of China Overseas Land & Investment Limited and COSCO Shipping Ports Limited and the Bank of East Asia, and also chair of the Audit and Risk Committee, the Appointment Committee and the Remuneration Committee. She is also a former independent director of China Shenhua Energy Company Limited.

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broader vision built on interactions with people and things. Therefore, if the board comprises experts from finance and economics, politics and industry, it is more diverse and it will have a stronger voice.

Capabilities rather than gender is the predominant criteria for independent directorsWhen appointing women as independent directors, publically listed companies look for their experience and capabilities rather than focusing on gender, but having women on the board or among executives will have positive influence on the continued diversification of the board. I was an independent director at Shenhua Energy when women rarely could find place in the board at engineering and energy companies. Now there are three women among the independent directors at Shenhua, including Maria Tam (lawyer, head of HK Deputy Group at NPC). Women's representation has been improved at Shenhua's boardroom which is quite diverse today.

Retired executives and professionals (partners, lawyers, etc.) are good candidates for independent directors. With achievements in their specific practices and connections with the leadership of large companies, they are perfect candidates for independent directors. Organizations could consider forming some structures to maintain these networks through activities that engage potential external directors.

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Higher level of education is the foundation for advancing women leadershipThe percentage of women among directors and executives is closely associated with industry. The staff at cosmetics companies are mostly women, who are also the majority of consumers at shopping malls and supermarkets. In comparison, women representation at engineering companies is low. Regulators and the market are constantly pushing forward the diversification of the boardroom, but there is no need to set rigid quotas. Rather, we would better follow a natural route of development.

Hong Kong probably has the highest percentage of women in the workplace in Southeastern Asia and the current under-representation of women in the boardroom is not a problem. As our society and economy develops, more girls are getting education in certain fields. Engineering, for example, used to have few female students. Today, more girls are studying engineering in Hong Kong, and some of them enter large corporations upon graduation and work all the way up to the top leadership. There will be more female leaders, experts and directors and we are confident in promoting women leadership in Mainland China and Hong Kong SAR.

Though the prospects look bright in general, female leaders are still rare in countries including India and South Korea. In the business community, women certainly face challenges in advancing their careers. One example is the "pub culture" in the UK, where people go to bars after work and acquire information that they don't get in the office. This is quite normal for men, but women may not like these kind of socializations. Will we miss out on opportunities for being absent? Probably yes, and that is why we need to create a culture that enables the growth of women, one that will not let women "lose opportunities for not participating in the activities where most of the colleagues are at", for instance.

Stay calm and focused and stick to principles amid inequalities Looking back at my own career, there certainly have been discriminations, some were above the board, some not. Back then I felt indignant and wanted to fight and protest for fairness. Today upon reflection, I know I was unwise. The more anger and burden I accumulate on my mind, the less focused I am on my work. "Don' t punish yourself for others' errors", it is simple as that.

The key is how we approach these problems: let down the burdens and move on, focus your mind and energy on your job and career development. Also, stick to your own principles for a clear conscience.

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Fair competition is important, no need for clear-cut gender quotaThe survey and research on women directors provides insights in both developed countries and emerging markets. We hope competent women will have platforms and opportunities to advance their career on a level playing field.

Most women in the workforce wish to realize their career plan and prove themselves. However, due to bias and traditional definition of women's roles which comes from not only men, but also women, we rarely see women in the boardroom.

In construction companies, men are the majority of staff and women account for but a small share. Men are also predominant in management and decision-making. There are also companies where most of the staff are women but the management is mostly men, and that is accepted universally in our society.

Hong Kong has relatively higher percentage of women in the boardroom for several reasons: Hong Kong has a large number of women in the work force, and female representation in the

local government is quite high; women in Hong Kong have strong education and confidence, and they don't want to be defined by stereotypes. That is why there are plenty of successful women across industries. Another reason is many family businesses are inherited by women who are a key force in corporate management and decision-making.

Many organizations in other parts of the world would set regulations to improve gender diversity, but these are not rigid quotas. When companies cannot find suitable female candidates, it is unwise to force a woman into the boardroom just to meet the target. Therefore what matters more is fair competition and career development environment in the workplace.

Work performance is not affected by genderI am the only women in the board in all three companies where I sit as external independent director. From my personal perspective, the roles of women and men in the boardroom are the same as their votes are equal. In decision-making, our experience, knowledge and strengths are complementary, and we come to final decisions together.

External directors need to be as independent as possible and communicate adequately about matters to be discussed in the boardroom. Some external directors are not fully independent and make no significant contribution to the company. This is not the case in the boards I sit, and the chairs truly value the opinions and concerns put forward by independent directors.

Ms. Lu Xiaoqiang Former member of Asia Pacific and Global Consulting Committee and the Board of Directors at Standard Life, former external director of China National Building Material Group, independent non-executive director at China Railway Construction Corporation.

There are female staff who have expertise in the business activities of companies and great ideas. Why not select directors or executives from these candidates? Why do women have fewer chances to become managers and decision makers? Our society needs to ask these questions.

As a woman in the workforce, I've always believed in women' s advantages. With some luck and good opportunities, our efforts, endurance and hard work will pay off.

Ms. Lu obtained a Doctorate in Economics from Canada, served in Canadian Imperial Bank of Commerce and the Royal Bank of Canada before returning to Asia where she took up several roles including the vice president, director, managing director and head of Chinese unit in major investment banks including BNP, Merrill Lynch (Asia Pacific Investment Banking), Citi Bank Corporate and Investment Banking (Asia) and Deutsche Bank.

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Though there are no rigid quotas, the SASAC (State-owned Assets Supervision and Administration Commission) and companies do hope to have women in the boardroom. Many female independent directors I know come from the backgrounds as entrepreneurs, executives, industry elites or social activists.

From my personal experience, I have been through a long journey from entry-level employee to a leader and then an independent director. It is a pity that a lot of women did not eventually reach their goals.

Be ready to devote and prove ourselves and leverage women's advantagesIn investment banking, women have certain advantages in approaching clients and internal management: they are good listeners and proactive communicators who understand customers' needs; they are flexible managers who may be less aggressive; but they work equally hard for their career. Therefore, many women have become the best in their practices. In

my career, I have always leveraged my strengths as a woman and served as a coordinator between management and the staff, men and women, Chinese and foreigners, client and the investment bank to help them work together for mutual benefits while obtaining their goals.

Career advancement should be a natural development. If you work hard and achieve good results, promotion and recognition will be the natural results. Women need to learn, communicate and devote themselves to work. Instead of expecting quick success or instant benefits, we need to keep calm and stay focused. Both men and women need to prove themselves through a process of development. Career advancement only comes from continued hard work and devotion.

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Know the company before joining the board as an independent directorThe independent directors are often hired through connections. Reputable companies tend to set high bars for candidates, and the leadership of publicly listed companies are more likely to accept recommendations through friends, alumni and colleagues for these candidates are more reliable. Also, these indirect referrals are still able to keep their independence.

Some companies would reach out to potential independent directors through web search or phone calls. The candidates, when approached in this way, find it abrupt and would not readily accept the offer most of the time. There may be risks involved in siting as an independent director of a small business where operation may not be very steady. Intentional incomplete disclosure of information is quite common in this case, therefore we need to assess and control the risks in advance.

Female directors are more risk-aware than their male counterpartsWomen are more aware of details and risks and tend to be more moderate and conscientious in decision-making as they would approach an agenda from

multiple aspects. A large number of accounting professors are women who are good candidates for chair of audit committee of publicly listed companies if they are to sit as independent directors. Baring the cases where women are less qualified or experienced than male directors, women usually fulfill their duties quite well.

Some people might think that proposals are rarely turned down at the board meetings, which seems to indicate inadequate performance on the side of the independent directors. As a matter of fact, most of the proposals have been discussed before board meetings. These pre-discussions are generally more practical, and if a proposal is not agreed upon in these discussions, it will not be brought forward in board meetings.

Learn from role models and face up to challengesAre there obstacles in the career paths of women? Do women and men get equal opportunities? Inevitably, there are challenges and the opportunities aren't equal. What really matters is how to deal with these obstacles or limitations. Today's workplace is largely fair and full of opportunities, but some women may not have a strong drive or clear objective. In universities for instance, there are a lot of female teachers but not as many female professors. The reason behind this is not obstacles or shortage of opportunities for women, but that women tend to lose drive into the latter period of career development.

Professor Xiao XingDoctorate in Accounting by Tsinghua University; the dean and professor of Accounting Department at School of Economics and Management of Tsinghua University; senior visiting professor of MIT Sloan School, University of Wisconsin-Madison and Suchou University of Taiwan and a 2010 Fulbright Scholar.

Women should enhance self-cognition in their career development and manage their life and time wisely.

Role models are important. A female coach or executive will encourage female leaders to follow their suit and set high objectives and clear career goals.

She was a member of the Expert Group of China Development Bank, independent consultant at World Bank, independent director at THUNISOFT and Dohia. She also sits as the independent director at Agricultural Bank of China and Goertek. She is also a member of the National MPAcc Education Steering Committee, board member of the Finance and Cost Sub-society of the Accounting Society of China, member of Beijing Teaching Collaboration Committee of Accounting Group among Higher Education Institutions, associate editor-in-chief of China Accounting and Finance Review and member of the editorial board of China Accounting Review.

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The difference between women and men do create some challenges in the workplace. In schools, women tend to perform well. Once they enter the workplace, issues arise. For instance, male teachers gain popularity by telling jokes in the classroom, but female teachers can be a little reserved. Female teachers are rare in the classes for corporate executives. Introvert personalities do pose some challenges in this regard.

Another challenge is that some women may have to shoulder responsibilities at home. Taking care of children and the elders is time and energy consuming. My personal experience boils down to "manage your life and time wisely". We must believe that by arranging tasks according to their priority levels and allocate time accordingly, we can make it.

These challenges are common for most of the young women. I suggest they learn from the role models around them. To a large extent, women are influenced by the women around them, in both education and work. For example, if a student has had a female supervisor in postgraduate research, she will probably be resolved to have a successful career, but a male supervisor will probably not have the same power of influence. Today, programs like "Women Leadership", "Mulan in Business" and "Women of Impact" are highlighting the power of women role models and mentors. Supervisors and leaders' experience and guidance will help young women strengthen their confidence, set clear goals and work relentlessly.

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Women in the Boardroom 2019 | Conclusion

ConclusionOur survey on female directors in Mainland China and Hong Kong confirmed our observation over a long period of time: women are still under-represented in the boardroom. Thanks to high percentage of women in the workforce and HKEX' s encouragement for diversification of the boardroom, Honk Kong has a higher percentage of female directors than Mainland China. In general however, China has lower percentage of women on the board in average, compared with European countries.

The conversations with the three women directors contribute greatly to our report. Coming from different professional backgrounds—the government, business and academia, they keep taking on greater challenges and work hard to win acknowledgement and success. They are the role models for women who aspire to advance further in their career and win a seat in the boardroom.

What's impressive is these views that are shared among our three interviewees:

Publically listed companies benefit from diversification of the boardroom. Compared with men, women are more sensitive and conscientious about details, and less aggressive. Identification and control of risks are critical for decision making,

whether in times of turmoil or strong growth. Women usually perform well in audit and risk management and women directors are recognized and respected for their professionalism and expertise. Our performance at work is not affected by gender.

Higher level of education is the foundation for women' s success. Gender diversification does not mean companies need to set gender quotas in the boardroom. The more realistic and reasonable way starts from improving basic education and create an environment that safeguards fair competition and enable women to get promoted. As gender differences are taking on less weight in the workplace, the under-representation of women in the boardroom will no longer be an issue as education for women becomes a norm, our economy develops and people's minds change. The improvement will come in due course.

Value the influence of role models in education and the workplace. Unlike men, some women are not as uninhibited and tend to spend less time socializing. Therefore we need to create a culture that empowers women while emphasizing on the importance of mentors and leaders both in educational and professional environments. We hope the experience and guidance of successful role models will help young women find confidence and resolve when they feel lost.

Women should enhance self-cognition and leverage their advantages while sticking to the principles. Both men and women need to make continued efforts through a process whereby they eventually prove their worth. Achievements should come as a natural result of hard work and being promoted to a title above one's competence may not be a good thing. Unfairness or limitations in the career development are inevitable. Instead of carrying these issues as a burden, women should devote their time and energy to their job, learn and communicate more and stay calm and focused.

At present, developed countries in the west are promoting the power of women. The culture in these countries stress on women' s pursuit of self-realization, independence, freedom from traditional constraints, value and contribution, an idea that helps improve the percentage of women in the boardroom. As the world's second biggest economy, China is expected to have more excellent women in executive positions and the boardroom. This will elevate the governance of companies and boost the sustained development of women leadership.

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Women in the Boardroom 2019 | Appendix

Table 1. Women in the boardroom

Table 2. Women in the boardroom by industry

Table 3. Percentage of women directors by region

Companies Directors Female directors Percentage of female directors

Total 220 2,247 245 10.90%

Industry Directors Women directors Percentage of women directors

TMT 360 45 12.50%

Financial services 593 74 12.48%

Consumer industry 318 29 9.12%

Energy, resources & industrials 556 48 8.63%

Government & public services 78 6 7.69%

Life sciences and healthcare 93 6 6.45%

Region Directors Women directors Percentage of women directors

Hong Kong 773 103 13.32%

Mainland China 1,474 142 9.63%

Appendix

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Women in the Boardroom 2019 | Appendix

Table 4. Women as chairs of committees

Table 5. Women directors in five major committees

Number of committee chairs (number of

committees)

Number of female

committee chairs

Percentage of female committee

chairs

Total seats of committees chaired

by women

Seats held by women directors

Percentage of seats held by women

directors

Total 540 58 10.74% 247 82 33.20%

Audit committee Remuneration committee

Nomination committee

Risk committee Strategy committee

Number of committees

128 127 100 41 48

Number of female committee chairs

11 13 17 8 2

Percentage of female committee chairs

8.59% 10.24% 17.00% 19.51% 4.17%

Seats in committees

504 495 423 204 321

Seats held by women directors

63 63 49 29 26

Percentage of seats held by women directors

12.50% 12.73% 11.58% 14.22% 8.10%

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Women in the Boardroom 2019 | Editorial Committee

David Wu Vice ChairmanChina Center for Corporate Governance Leader Deloitte China TEL: +86 10 8512 5999E-mail: [email protected]

Xu Sitao Chief EconomistDeloitte ResearchDeloitte ChinaTEL: +86 10 8512 5601E-mail: [email protected]

Shirley Woo Audit and Assurance PartnerSouthern China Leader, Women Leadership ProgramDeloitte ChinaTEL: +852 2852 6514E-mail: [email protected]

Eric TongFinancial Services Industry Group Audit and Assurance PartnerINED Club Chairman Deloitte ChinaTEL: +852 2852 6690E-mail: [email protected]

Editorial CommitteeDavid LungNational Audit Market Strategy Committee LeaderChina Center for Corporate Governance Member Deloitte ChinaTEL: +86 10 8520 7118 E-mail: [email protected]

Rosa YangManaging Partner, Markets & Global NetworkDeloitte ChinaTEL: +86 21 6141 1578E-mail: [email protected]

Hugh Gozzard Risk Advisory PartnerChina Center for Corporate Governance MemberDeloitte China TEL: +852 2852 5662E-mail: [email protected]

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Women in the Boardroom 2019 | Researchers and contributors / Contacts

Selina ZhaoSenior ManagerChina Center for Corporate Governance Deloitte ChinaTEL: +852 2852 6617E-mail: [email protected]

Veronica LinSenior SpecialistChina Center for Corporate Governance Deloitte ChinaTEL: +86 10 8520 7950E-mail: [email protected]

Contacts

Lydia Chen DirectorDeloitte ResearchTEL: +86 21 6141 2778E-mail: [email protected]

Annie Zhou ManagerDeloitte ResearchTEL: +86 10 8512 5843E-mail: [email protected]

Researchers and contributors

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