News
Disclose gender diversity or be suspended: ASX
RUTH WILLIAMS
December 8, 2009
LISTED companies will be asked to publish a gender breakdown of directors and senior staff and to set targets for gender diversity under a new plan unveiled by the Australian Securities Exchange.
The proposed corporate governance guidelines, released by the ASX yesterday, call on companies to have and publish ''diversity policies'' that include self-imposed targets for staff diversity. Companies will be expected to disclose whether the targets are achieved, and to publicise the proportion of women on staff, in senior ranks and on the board.
Board nomination committees would also be required to disclose the ''skills and diversity'' criteria sought for each new board appointment. The ASX plans to adopt the measures on July 1 next year.
Companies that fail to comply with the guidelines will need to explain why not to the ASX Corporate Governance Council.
Eric Mayne, the council's chief executive, said yesterday that the issue might be elevated to listing rule status if enough companies failed to co-operate.
''We will have that detail on an annual basis, and you can see in two to three years' time the level of uptake,'' he told BusinessDay.
''If the representation of women on boards and in senior management hasn't improved, the question is what else can or should the Government or the ASX do … the next logical thing ASX could do is use the listing rules (option), and say 'it's now required for every company to have a diversity policy'.
''If they don't do that, we can suspend them until they do it.''
The ASX's move comes amid heightened debate about the lack of women in senior corporate ranks in Australia and overseas. Last week, the party of French President Nicolas Sarkozy tabled a bill calling for quotas for females on boards.
The Australian Institute of Company Directors last month published its own range of measures to encourage board diversity, and it noted yesterday that its new policies were ''consistent'' with those put forward by the ASX.
The latest Equal Opportunity for Women in the Workplace Agency (EOWA) census, released a year ago, found that the number of women in senior business roles in Australia had declined, with just 8.3 per cent of board seats held by females. The lack of progress has led some to push for quotas as a solution.
While describing such a measure as a ''last resort'', Australian Industry Group chief executive Heather Ridout warned last week that it could ''come to that'' if business did not act quickly enough.
Mairi Steele, acting director of the Federal Government's EOWA welcomed the ASX's move, saying it sent a ''useful message'' to corporate Australia.
''I think the consensus is, let's try targets and see how we go,'' she said. ''There's a lot of people talking about (quotas), saying if things don't improve, we need to consider quotas seriously because we are losing out on top talent.''
Marsh & McLennan and Heidrick & Struggles Launch Diversity Recruitment Program with Six Firms
Alliance marks search industry's first "Inclusion Network" encompassing minority, LGBT and women-owned firms
NEW YORK and CHICAGO, March 31 /PRNewswire-FirstCall/ -- Top professional services firms Marsh & McLennan Companies, Inc. (NYSE: MMC) and Heidrick & Struggles International, Inc. (Nasdaq: HSII) have named six minority-, LGBT- or women-owned search firms to their "Inclusion Network," a new diversity recruiting initiative the two firms announced last spring. Designed to attract a broader and more diverse talent pool to MMC, a provider of risk, strategy, and human capital solutions, the Inclusion Network program is managed by Heidrick & Struggles – a leadership advisory firm providing senior-level executive search and leadership consulting services – as part of a full suite of talent solutions the company offers.
The six firms participating in the Inclusion Network are The Hollins Group Inc. and Youngblood Executive Search, both based in Chicago; CREW Advisory Services, Quinn & Associates, and Wesley, Brown and Bartle Co., Inc., all based in New York; and McCormack & Associates, based in Los Angeles. Under the Inclusion Network program, when Heidrick & Struggles receives assignments from MMC, it then works with the Network members, who are generalist search firms with Diversity practices, to fulfill these searches. Two of the firms have been engaged for search assignments since the program began in January.
"After we announced the initiative last year, we received more than 40 inquiries from firms interested in participating in the network," says Billy Dexter, Partner at Heidrick & Struggles. "We rigorously reviewed and interviewed the firms, and identified six superior firms whose complementarity with Heidrick's own services makes them ideal partners in our Inclusion Network."
"This innovative diversity recruiting solution provides new opportunities for each of the participating parties," says Kathryn Komsa, Chief Diversity Officer at MMC. "For MMC, the strong industry knowledge and global network of Heidrick & Struggles, combined with the specialized networks and expertise of our Inclusion Network firms, make this an ideal program for identifying and attracting the broad talent base we need to compete effectively, while also broadening our diverse supplier base."
The Inclusion Network program, piloted by Heidrick & Struggles and MMC, is part of the Diversity Advisory Services Practice at Heidrick, offering a comprehensive set of solutions for clients looking to expand diversity not only in their workforce but also in their vendor set. In addition to providing access to a broader range of candidates, including women, people of color, and members of the LGBT (Lesbian, Gay, Bisexual, and Transgender) communities to clients, Heidrick & Struggles will also assist with leadership consulting, training, and other services with the Network search firms.
"Working with Heidrick & Struggles on this initiative is a terrific opportunity to raise the profile of member firms and share our strengths in building the most talented and diverse workforce that clients need to compete globally today," says Larry Hollins of The Hollins Group.
"We hope that through this initiative we can further solidify the commitment to diversity in the search industry," says Mr. Dexter. "This is a program that allows us to offer a unique approach to creating a more inclusive workplace and we plan to roll it out globally for our clients."
About MMC
MMC is a global professional services firm providing advice and solutions in the areas of risk, strategy and human capital. It is the parent company of a number of the world's leading risk experts and specialty consultants, including Marsh, the insurance broker and risk advisor; Guy Carpenter, the risk and reinsurance specialist; Mercer, the provider of HR and related financial advice and services; Oliver Wyman, the management consultancy; and Kroll, the risk consulting firm. With approximately 52,000 employees worldwide and annual revenue exceeding $10 billion, MMC provides analysis, advice and transactional capabilities to clients in more than 100 countries. Its stock (ticker symbol: MMC) is listed on the New York, Chicago and London stock exchanges. MMC's website address is www.mmc.com.
About Heidrick & Struggles
Heidrick & Struggles International, Inc. (Nasdaq: HSII) is the leadership advisory firm providing senior-level executive search and leadership consulting services, including succession planning, executive assessment, talent retention management, executive development, transition consulting for newly appointed executives, and M&A human capital integration consulting. For almost 60 years, we have focused on quality service and built strong leadership teams through our relationships with clients and individuals worldwide. Today, Heidrick & Struggles' leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. For more information about Heidrick & Struggles, please visit www.heidrick.com.
About the Inclusion Network
For more information on the Inclusion Network firms, please visit their websites at:
The Hollins Group: www.thehollinsgroup.com
Youngblood Executive Search, Inc.: www.yngbloodexecsrch.com
CREW Advisory Services: www.crewadvisory.com
Quinn & Associates: www.lisnagol.com
Wesley, Brown & Bartle Co., Inc: www.wbbusa.com
McCormack & Associates: www.mccormackassociates.com
Best man for the chair is a woman: QBE joins select group in top 100
GLOBAL insurer QBE has become one of a handful of ASX 100 companies to appoint a woman as chairman after the long-standing incumbent, John Cloney, yesterday announced his retirement.
Belinda Hutchinson will be elevated to the chair in July, ranking alongside her one-time Telstra boardroom colleague Catherine Livingstone as the female leader of one of the country's top companies.
As well as serving on Telstra's board - where Ms Livingstone succeeded Donald McGauchie last year - Ms Hutchinson has been a director of Coles Myer, TAB and Snowy Hydro Trading. Both Telstra and QBE are among the top 20 ASX listed companies.
Ms Hutchinson has been a director of QBE since 1997, a role she took on after she completed a five-year term as an executive director of Macquarie Group where she headed up its underwriting business.
Ms Hutchinson's appointment removes a corporate governance concern about QBE.
Mr Cloney had been the company's chief executive for 17 years until he retired from that job in January 1998. He was appointed non-executive chairman just nine months later. In its corporate governance code, the ASX Council now recommends that listed companies have an independent director as chairman who has not previously been chief executive.
" A lack of diversity in companies’ executive suites may stem more from internal policies than a lack of minority talent ready to take the helm," suggests Lee H. Igel, an assistant professor at New York University who specialises in management and organisational behaviour.
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