Proportion of female directors at top 100 SGX companies surpasses 25% target in 2024

[SINGAPORE] The proportion of female directors in the largest 100 Singapore-listed companies hit 25.1 per cent last year, up from 23.7 per cent in 2023, the latest edition of the Singapore Board Diversity Review reported.

The study, released on Friday (May 30), analysed the top 100 companies by market capitalisation with a primary listing on the Singapore Exchange (SGX), as well as the overall market.

Not only did the result surpass the 25 per cent target set by the Council for Board Diversity (CBD), the target was achieved a year ahead of its end-2025 deadline.

The CBD, which authored the study, noted in the report on the findings: “The growing participation of women directors across corporate boards has been encouraging and reflective of the evolving business landscape, efforts by the director ecosystem, and the introduction of regulatory enhancements.”

Among all 615 Singapore-listed companies, the proportion of female directors improved to 18.1 per cent last year – up from 16.1 per cent in 2023 and 8.1 per cent in 2013.

That said, 188 Singapore-listed companies, or 31 per cent, still had all-male boards.

More female leaders

Women held 13 per cent of all board leadership roles in Singapore-listed companies last year, up from 11 per cent in 2023. These roles included chairmanship of the board or on nominating committees (NCs) and audit and remuneration committees.

However, the proportion of female board chairs stood at just 8 per cent last year. This mirrors the 8.4 per cent global average, highlighting that “disproportionately few” women advance to this position, the CBD said.

Separately, the study observed that the gender mix of the board tends to improve when women serve as NC chair or member.

Among Singapore-listed companies in which NCs had at least one woman, 33 per cent of board appointees between 2020 and 2024 were female. The rate stood at just 11 per cent for companies with all-male NCs.

“The findings support observations that women leaders are more likely to tap expanded networks for a more inclusive nomination process, and to ensure qualified women are included in candidate shortlists,” the CBD said.

“Women in key board roles is itself a strong indicator of board culture and can serve to attract additional female board talent”, as well as candidates who value board diversity, it added.

In the report, Teo Siong Seng, chairman of the Singapore Business Federation (SBF), noted that the improvement in diversity happened without gender quotas being imposed on boards. This made the change “more sustainable”, he said.

First-time directors

The study found that Singapore-listed companies appointed 310 first-time directors last year – the largest cohort since at least 2015.

This points to “greater value being placed on the skills, expertise and potential of a new board talent, over prior directorship experience”, the CBD noted.

The most sought-after skill set for new directors was finance and investment expertise, followed by strategy and management.

There was a better balance between new and long-serving directors. Among the top 100 companies, the average tenure of a director fell to 6.4 years, from 6.8 years in 2020. Four in 10 independent directors started their appointment under three years ago.

Among all Singapore-listed companies, 55 per cent of directors were independent last year, up from 49 per cent in 2016. The improvement comes after the regulatory arm of the SGX capped independent directors’ tenure at nine years in 2023.

As Teo of the SBF noted: “We’re seeing organisations recognise that board diversity is part of corporate governance, and that it makes their boards and businesses more resilient.”