Large EU listed companies will soon be obliged to ensure that 40 per cent of their non-executive director roles are held by the underrepresented gender.
However, local C-suite mentor Nadia Pace has urged companies to view the EU Gender Balance on Corporate Boards Directive as an opportunity rather than yet another compliance requirement.
Speaking to WhosWho.mt, Ms Pace – who has served as an NED on a number of boards – said that women and men tend to approach business challenges from different perspectives.
“Women tend to be less risk-averse because they tend to ask different questions and have more of a 360-degree approach, perhaps asking questions that no one would have thought about.”
“I’m generalising here, but in general I think women NEDs would rather start with consolidation and make sure there is a step-by-step approach, with all the financing in place and all the boxes ticked rather than just going for it.”
However, she added that this should be balanced with the ‘go-getter’ attitude she associates more with male businessmen.
“Both skill sets are needed, because a company will stagnate if it ends up overanalysing into a state of analysis paralysis,” she said.
“However, it’s not just about risk, but potential missed opportunities. Asking the right questions could instigate the right discussions and the right decisions to be taken.”
The directive is set to come into force in June for listed companies employing at least 250 people and with an annual turnover exceeding €50 million, meaning it will apply to only a handful of Maltese firms.
Ms Pace said that most of these Maltese companies are very close to reaching the gender target, but stressed that appointing both genders on boards should be viewed as good business practice.
"Locally, NEDs are often onboarded based on close personal connections – they are people who we trust or know – rather than their competencies and value they can give at board level.”
“If that could slightly shift, it could open up a wider pool of people to have the opportunity to join boards and contribute differently.”
Main Image:
