Paola Profeta Università Bocconi Milan, Italy

Transcription

1 Gender quotas on boards The Italian case Paola Profeta Università Bocconi Milan, Italy 22 June2015

2 Diversity and gender equality The concept of diversityit is central lin modern societies. Differences of gender, age, nationality, race, ethnicity, sexual orientation, socio economic status, religious beliefs, political ideologies are a key value for societies, economies and organizations. Diversityit is receiving ii a growing attention ti in strategic t policy and business agendas. Diversity is key for policy making andorganizations Which measures are effective to promote diversity? A focus on the gender dimension. Gender quotas as a measure to break the glass ceiling.

3 Gender quotas on boards Pros and Cons of gender quotas: the debate Equity and efficiency (promote the best use of talents) Quality and Meritocracy: It is in the interest of firms to shortlist the best candidates Diversity and performance: heterogeneous context matters, because decisions i are different, perspectives are enlarged, innovationi A fair competition, break down men s monopoly. Temporary nature. The array of talents is wider: How to create incentives to compete Women are more risk averse: the Lehman Sisters hypothesis Spillover effects on managers The role of selection The role models Norway as a pioneer Norway as a pioneer Causal evidence

4 The Italian case Women are under represented in economic decision making throughout Europe. Italy ranks among the worst performers, with wide gender gaps in employment, wages and careers According to the 2015 Global Gender Gap Index, World Economic Forum: Italyranks 69outof 142 countries. For economic outcomes: 114 Female occupation rate: 47%

5 The Italian law In spite of the dl delays on gender equality Law 120/2011, Golfo Mosca, bipartisan Main features: 1 year Limbo period: August Gradualism: target 1/5, 1/3, 1/3 Temporary: 3 mandates dt (9 years) Sanctions Listed AND state owned companies: private and public

6 Women on boards, listed companies, Italy (1934 today) 25,00% 31 December 2014: 23% 20,00% Law 120/ ,00% 10,00% 5,00% 0,00% Source: From 1934 to 1998: Gamba,M. & Goldstein,A. (2009). The gender dimension of business elites: Italian women directors since 1934, Journal of Modern Italian Studies, 14(2), From 1998: Authors elaboration on Consob

7 Palgrave MacMillan

8 Women on boards, Europe

9 Women on boards, evolution, Europe 30% 25% 20% 15% 10% 9% 9% 10% 10% 10% 11% 11% 12% 13% 15% 16% 5% 0% Elaborations on EC EC database of women and men in decision making, 2013

10 Significant progress concentrated in few countries

11 The Italian case Italy is a new laboratory of analysis in Europe. We can study rigorously the impact of gender quotas: Onwomen s empowerment On female leadership Diversity Selection Further effects on performance, governance, leadership, culture

12 Progress Project European Commission Presidenza del Consiglio dei Ministri Dipartimento Pari Opportunità and Università itàb Bocconi Dondena Research Center for Social ld Dynamics and Public Policies

13 Selection /1 A picture of the boards of directors and boards of statutory auditors of the 240 companies listed on the Italian stock exchange as of 30 June 2013 (Consob) Information on all members, men and women, by company. We have analyzed 3170 CV. Information is collected and codified in a complete dataset. To be merged with data on each company.

14 Selection /2 3 groups of companies GROUP 1The last board renewal occurred after August 2012, i.e. with the gender quota law in place GROUP 2 The last tboard renewal occurred bt between July 2011 and July 2012, i.e. when the gender quota law was approved but not enforced GROUP 3 The last board renewal occurred before July 2011, i.e. when the gender quota law was neither approved nor enforced Board renewals As of 30 June 2013, 34.6% of companies listed on the Italian stock exchange had renewed their boards after the gender quota reform law went into effect Pre- August ,2% Post- August ,6% August August ,2%

15 Main findings Not only the number, not only the women Women s empowerment: Women are increasingly represented in boards (and audit committees): More than the quota threshold! GROUP 1: 24,9%, GROUP 2: 15%, GROUP 3: 12,6% Age: Board members are younger after the reform, especially women Education: Quotas are associated with more educated members: more educated women AND more educated men (with post graduate degrees) Multiple seats: Members in more than one board decrease after quotas (not in group 2) Quotas are not associated with more female members belonging to the family (yes in group 2) In group 2 it is important t to increase the NUMBER of women, after the reform the SELECTION mechanism takes place Better quality

16 Business and growth Gender equality is not only a matter of rights, but a key economic issue as well Women represent a crucial positive value for the economy and theycontribute substantially to business and economic growth (womenomics) A virtuous circle may begin when more women work and are promoted to top positions

17 Conclusions The Italian gender quota law increases female presence in boards, and starts a new selection process Next steps: The relation between selection and outcomes Performance of the company Returns, Market prices Feedback effects at the managerial level Quotas should be part of a broad picture. The final goal of policies is to promote gender equality at all levels. Economic arguments matter.