Australia’s government is preparing to name and shame companies with gender pay gaps, as the latest data show progress toward equal representation in the country’s boardrooms is moving at a glacial pace.
(Bloomberg) — Australia’s government is preparing to name and shame companies with gender pay gaps, as the latest data show progress toward equal representation in the country’s boardrooms is moving at a glacial pace.
The Labor government this month introduced a bill that will publish the gender pay gaps of employers with 100 or more workers by 2024.
Progress on Australia’s gender pay gap stalled at 22.8% last year, with women on average earning A$26,596 ($17,279) less than men. Australia ranks 43rd on the Global Gender Pay Gap Index, which is topped by Iceland, Finland, Norway and New Zealand. Globally, women are paid about 20% less than men, according to the International Labour Organization.
The Australian government’s legislation is part of a broader international push to help women achieve pay parity with men. Similar directives are in place in the European Union, UK and in Japan, where companies with 301 or more employees face new wage reporting standards. In the US, there is a nationwide salary transparency movement to tackle gender and racial wage gaps.
Japan’s New Disclosure Rules to Help G-7’s Worst Gender Pay Gap
Minister for Women Katy Gallagher said the “global experience” was among the reasons why publishing pay gaps for companies was necessary, saying transparency encouraged action.
Women working full time earn on average 14.1% less than men, Gallagher said in a statement. On current projections, it would take another 26 years to close the gap and women are collectively losing A$51 billion annually.
The government’s Workplace Gender Equality Agency (WGEA) currently publishes pay gaps by industry sector, but not individual companies.
WGEA Director Mary Wooldridge said the government’s bill included refining what employers report to the agency, such as sexual harassment and discrimination.
“In the 10 years since the Workplace Gender Equality Act was passed, there has been meaningful progress but the rate of change has been slow,” Wooldridge said in a statement. “The new bill bill will boost transparency and accountability, while spurring an acceleration of progress toward workplace gender equality,” she added.
Board Representation
The legislation comes as data show that growth in women’s representation in the boardrooms of Australia’s biggest listed companies remains slow.
Women held three more seats on the boards of companies in the S&P/ASX 200 Index in the December quarter from the three months prior, according to data compiled by Bloomberg.
That was a rise of just 0.1 of a percentage point, to 36%. The Stoxx 600 in Europe has 38.7% of board positions held by women. Still, Australia is outpacing the US, where women make up 32.1% of boards in the S&P 500, while they make up 14.6% of directorships in the Nikkei 225 and 18% of the Hang Seng index.
According to a combination of data compiled by Bloomberg and information from the Australian Council of Superannuation Investors, four companies still do not have any female board members, which is no change from the previous quarter. The four companies are De Grey Mining Ltd., Capricorn Metals Ltd., Sayona Mining Ltd. and Core Lithium Ltd.
Data snapshot:
- Twelve companies reduced the number of female directors on their boards; Bapcor Ltd reduced the number of women by 2
- Fortescue Metals Group Ltd. has the highest percentage of women on its board
- The real estate sector led the net gain in female board members, with one woman added to the boards at Abacus Property Group and Lendlease Corp.
- There are 136 S&P/ASX 200 companies with more than 30% female board membership
- The Bloomberg Gender-Equality Index returned -3.5% in December, outperforming the MSCI World Index, which returned -4.2%
NOTE: The analysis is based on data that covers 193 companies in the S&P/ASX 200. Historical analysis may be impacted by changes to the index membership, while monthly board changes may be considered effective at month’s end.
The Bloomberg Gender-Equality Index is a modified capitalization-weighted index that tracks the financial performance of those companies committed to supporting gender equality through policy development, representation and transparency.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.