The proportion of women on the boards of directors increased in 2022

The 2022 results of the “Women on the Board of Directors Turkey Report”, which has been regularly prepared every year since 2012 by the Sabancı University Corporate Governance Forum, have been announced.

In the report, which deals with the change in the boards of directors of 475 companies registered in Borsa Istanbul (BIST), the rate of women in the boards of directors, which was 16.7 percent in 2021, increased to 17.5 percent in 2022. Thus, the rate of women on the boards of directors of BIST companies improved, albeit at a low level.

According to the research, 137 companies, which achieved the minimum rate of female members recommended by the CMB of 25 percent, constituted only 28.8 percent of all companies. The ratio of 60 companies with at least 3 female members in all companies was 12 percent. 415 companies have not yet been able to ensure effective gender diversity in their decision mechanisms.

Among all BIST companies, 158 companies and 21 companies within the BIST-100 are still managed by all-male boards. Only 41 of all BIST companies have a female chairman of the board, and a female CEO who is on the board of directors of only 25 companies.

All 158 companies’ boards of directors are male

According to the results of the Women in the Board of Directors 2022 Turkey Report, the shareholders of 475 companies registered in Borsa Istanbul appointed 3,211 directors to the boards of directors at the general meetings of 2022. 32.6 percent of these directors were independent board members.

In 2022, the boards of directors of 158 of 475 companies were all male. In 2022, the proportion of companies with all male boards increased from 33.1 percent to 33.3 percent. While there was a slow but positive change in the proportion of companies with at least one female member on their board of directors between 2013 and 2022, it decreased from 66.9 percent to 66.7 percent in 2022.

Out of 563 female members elected to the BIST boards of directors in 2022, 208 (36.9%) non-executive but non-independent members, 230 (40.9 percent) independent board members and 125 (22.2 percent) executive became a member.

While an increase was observed in the rate of female members among the total members of the board of directors (17.5%) in 2022, the rate of female members among the independent board members also increased. The rate of women among the independent members of the board of directors rose to 21.9 percent, surpassing the rate of women in the total.

In 2022, 34.9 percent of 563 women were selected from among the members of the dominant partner families. 366 women elected to the boards of directors made up only 11 percent of the board memberships of BIST companies. This rate was 10 percent in 2021 in the previous research.

Gender distribution in board committees

In 2022, 920 members, 196 of whom are women, were appointed to the audit committees of BIST companies, and 1014 members, 227 of which are women, to the corporate governance committees.

While the rate of women on the board of directors was 15.3% in 2021, this rate increased to 17.5% in 2022. The rate of female board members among independents increased from 19.3% in 2021 to 24.4% in 2022. . The boards of directors of 21 companies included in the BIST 100 in 2022 were all men.

Sabancı University Corporate Governance Forum Director Ata Can Bertay, whose evaluations were included in the statement, said:

“The results of the 2022 Women in the Board of Directors Turkey Report show that the proportion of women on boards has increased, but reveals that there is still an important area of ​​progress. Ensuring gender diversity in the decision-making processes of companies and increasing the representation of women in the boards of directors are essential for sustainable growth and corporate performance. is of critical importance.

Increasing the number of companies that reach 25 percent, which is the minimum female member ratio recommended by the CMB, and balancing the gender distribution in the board committees will contribute to Turkey’s further strengthening in the field of corporate governance.