Allbright continually reviews gender representation in the business sector. Each year, we publish two reports, The Allbright Report that monitors gender diversity in the management teams of listed companies in Sweden and one in which we investigate a specific area.
This year’s Allbright report is historical. Large-cap companies in Sweden have reached 40 percent of women on boards, and the percentage of women in management teams is increasing steadily, reaching 30 percent for the first time ever. There are still, however,obstacles to women’s advancement: CEOs holding positions for at least ten years are the most significant stumbling blocks. They have, on average, 10 percent fewer women in their management teams. These companies have a lot of work to do, especially if they want to keep up with the green transition. In this year’s report, Allbright found that a majority ofsustainability managers are women. But as women take the lead, other groups are left behind. The number of people of color on boards and management teams has stagnated, proving that Swedish companies still have a lot of work to do.
Executive headhunters are pulling the strings behind the stage of Swedish businesses. They are the ones with the power to find and promote candidates for the top positions. Despite this, they are seldom held responsible for the lack of equality in recruitment processes. Your ethnicity, age, and where you live can still affect whether you get to the top of the corporate ladder. Women are also recruited at a considerably lower rate – a rate that means Sweden will most likely never reach gender-equal management teams. Meanwhile, other countries are picking up the pace. It is high time for the headhunters to put inclusivity on the agenda.
After last year's setback on the gender equality front, the progress is now gaining momentum once again, and that with some notice. The proportion of women in executive management positions is increasing, while the boards of large companies are nearing the finish line. The most unexpected improvement can be seen on the green list of gender-equal companies, and among small companies on the stock exchange that have historically been the worst at promoting women. However, Sweden lags behind when it comes to other forms of discrimination. Being a white majority Swedish individual seems to be a merit. For the first time, Allbright has also examined Sweden's most influential family spheres to highlight which owners are engaging in these issues and which are shirking their responsibilities.
After last year's setback on the gender equality front, the progress is now gaining momentum once again, and that with some notice. The proportion of women in executive management positions is increasing, while the boards of large companies are nearing the finish line. The most unexpected improvement can be seen on the green list of gender-equal companies, and among small companies on the stock exchange that have historically been the worst at promoting women. However, Sweden lags behind when it comes to other forms of discrimination. Being a white majority Swedish individual seems to be a merit. For the first time, Allbright has also examined Sweden's most influential family spheres to highlight which owners are engaging in these issues and which are shirking their responsibilities.
Tech companies are perceived to be modern and progressive. The homogeneity on the c-suite level tells a far different story. Among employees, women and people of color sound the alarm, testifying to discriminatory and unjust conditions. Through statistics and interviews with employees and company representatives The Allbright Foundation has reviewed the work towards gender equality, diversity and inclusion at some of Sweden’s largest tech companies. The results are especially worrisome considering that the tech companies have enormous power to shape our future society.
The nomination committees are the hidden power of the Stock Exchange –and only 13 per cent of nomination committee members are women. Interviews with board members and representatives from the nomination committees stress the importance of gender equal boards, but gender equality in nomination boards is not seen as relevant question.
The Allbright report 2017 shows modest progress. The proportion of women increases by a percentage point from last year, reaching 21 per cent. The same bleak result is seen in CEO positions where women are stuck at six per cent. Those believing in rapid change towards gender equality must be disappointed.
Around 85 per cent of companies are still dominated by men and thus hindering improvement.
Only three per cent of all partners in private equity (PE) firms are women, while 15 out of 18 firms have management teams consisting of men only. Not a single role model for gender equality can be found in one of society’s heaviest spheres of power.
Virtually all people in Sweden are affected by private equity firms’ operations in some way. The firms have a total turnover of about 300 billion SEK, which is approximately eight per cent of Sweden’s GDP. These firms have a huge influence on the economy and society. But only a few women are invited.
Progress is in the air. The number of women in listed companies' executive management is increasing. More companies than ever have gender equal representation and the number of female CEOs is higher than in 2015.
We can not expect gender equal management teams until 2040. This year, the financiale sector made the greatest progress, with women representing 27 percent of management teams and the addition of four companies with female CEOs.
Trends are clearly changing. There are more women than ever on boards of directors. If progress continues at this pace, listed companies’ boards of directors will be gender equal in just 10 years.
Nominating Committees however, are not doing as well and face the threat of new gender quota legislation proposed for the fall of 2016. To achieve gender equal boards of directors, 220 men will need to be replaced by women.