Women on Board: FIRST IMPRESSIONS
A Sebi mandate to listed companies
to have at least one woman director on their board has led to several women
being enlisted for the job over the past one year. While some boards may just
be ticking a box, for others, the intent is serious. Rica Bhattacharyya talks
to five women who are first-timers on corporate boards
BRINDA JAGIRDAR Independent
economist
Jagirdar has been serving as
independent director on the boards of Capital First since September 2014 and
Rane Engine Valve since October. After a career with State Bank of India,
Jagirdar retired as general manager and chief economist. She did not want a
full-time job again but wanted to share her expertise in a meaningful way.
While she was consulting
independently, Jagirdar encountered Arun Duggal, chairman of ICRA and the Ficci
Centre of Corporate Governance, who invited her to join his programme, `Women
on Corporate Boards'.
INITIAL DAYS
Jagirdar had eminent banker MV
Tanksale mentor her. “While I am respected for the domain knowledge I bring to
the table, there is also a lot of learning,“ she says.
WHAT NEEDS TO BE DONE
The law needs to be amended to
ensure onboarding of independent woman directors.“This will give the company
the benefit of the knowledge and expertise of professional women,“ she says.
NEERA SAGG Former chief executive,
L&T Seawoods I
Last September, Saggi joined the
boards of Swaraj Engines, RPG Lifesciences, TRF, Tata Projects, Tata Realty,
Maithon Power, Tata Consulting Engineers, ILFS Financial Services, CARE India
(nonprofit), and Mahindra Heavy Engines.
INITIAL DAYS
Boards can be of two types. Some
fulfil the regulatory criteria while others involve the director considerably
in strategy and analysis.
On some boards, a special effort has
to be made to put your point of view across (at least in the initial few
meetings). For others, it is in their DNA to give an opportunity to the new
entrants, irrespective of gender. “The contribution you can make has to be
proven. Till that time, like any other new director or perhaps somewhat more,
you are being assessed,“ says Saggi.
WHAT NEEDS TO BE DONE
One woman on the board is definitely
not enough, says Saggi. “Look at Norway, at 40% (board representation of
women).But yes, one step at a time,“ she says.Also, it has to be about
different kinds of diversity, which helps the board to add more dimensions to
its functioning.
HIROO MIRCHANDANI Former business
unit director, Pfizer
Mirchandani joined as an independent
director on the boards of Tata Teleservices (Maharashtra), Tata Communications Payment
Solutions, Religare Health Insurance, DFM Foods and Premium Transmission this
March and Nilkamal in November.Mirchandani, mentored by Marico chairman Harsh
Mariwala as part of Duggal's programme, says the experience was useful in
taking the big leap from an executive committee role to a board role.
INITIAL DAYS
“In preparation of my first board
meeting, I familiarised myself with the company, its business, industry,
financials, management and board. I made a few customer visits too,“ says
Mirchandani.
Spending time with the chairperson
and managing director helped her understand the company and the role better. “I
studied the pre-reads diligently too,“ she adds.
One question she has asked all
chairpersons before joining their boards is if she was being hired to meet the
statutory requirement of `a sari in the room.' One chairperson told her, “There
are no free rides on my board. You join if you deserve a seat here.“
He articulated the strengths of his
current board and the need gap he proposed to fill through the woman director's
appointment. “I earned a seat on this board,“ she says.
WHAT NEEDS TO BE DONE
Companies must invest in grooming
women for board positions, says Mirchandani. Research has shown that companies
with more women directors produce stronger business performance. “Experience
shows groups with diverse perspectives can achieve more balanced
decision-making with innovative and de-risked outcomes,“ she says.Men and women
on boards can leverage their differences to deliver higher standards of
corporate governance, she adds.
SUDHA RAVI Executive director,
Piramal Fund Management & chairperson,
National Council on NBFCs of the
Associated Chambers of Commerce and Industry of India
Ravi has been serving on the board
of Goodyear India as additional director for independent directorship since
June.She is also a nominee director on four other companies. “My experience was
that the directors and management are equally eager to have you on board and
ensure you understand their company,“ says Ravi, who was part of the top
management team at State Bank of India.
INITIAL DAYS
Other board members respect you for
the insights you provide and actually share with you their views on the company
performance. “I have not felt any bias as a woman and have actually found the
other members appreciating my contribution and suggestions,“ she adds.
WHAT NEEDS TO BE DONE
Ravi does not believe in quotas, but
initially, companies do need a nudge, she says. “The first step of making it
regulatory was right. However, it would have been more effective if the Act had
set the requirement for an independent woman director.“ Most companies have not
adopted the spirit behind the Act of trying to bring in gender diversity in
real terms.
The next steps should be taken by
the women directors, she says. For instance, nomination committees that value
gender and diversity can help build a diverse leadership pipeline and a company
culture. “This is true even of women who occupy the corner suite or are in key
positions.“
SMITA AGGARWALChartered accountant,
with banking and financial services experience of over 25 years
Aggarwal has been serving as
independent director at Gokuldas Exports since November and is member of the
national managing committee of Indian Cancer Society since 2012.Aggarwal's
motivation to become an independent director was to get exposed to different
industry segments, new set of people to engage with and a variety of
challenges.
INITIAL DAYS
Before her first board meeting,
Aggarwal spent a full day in a company induction. “The CEO and CFO provided me
with an in-depth introduction to the company, its business model, financials
and key challenges,“ she says. She visited the manufacturing facilities, went
through annual reports and spoke to the chairman and other board members. “All
this helped me to be comfortable at the first board meeting. The sense I get is
that my skills and experience are valuable to the board.That I am a woman is an
added advantage,“ she says.
WHAT NEEDS TO BE DONE
Companies should move beyond the
mandate being a mere compliance requirement, to effectively using a diversified
and well-qualified board to add value.
“While gender diversification is a
useful step for company boards to follow, it's equally important that it is
accompanied with a genuine intent to professionalise the board and improve the
overall standards of governance,“ says Aggarwal.
ET 3APR15
No comments:
Post a Comment