MORE WOMEN DIRECTORS ON SOE BOARDS

  • Tony Ryall
State Owned Enterprises

The Government is improving its record of appointing women directors to Crown companies and would continue with plans to make boards more representative, Minister for State Owned Enterprises, Tony Ryall, said at an Institute of Directors seminar in Wellington today.

"Of the 91 directors currently on SOE boards, 18 are women -- that's around 20%. This is double the 10% proportion of women directors on private sector boards in New Zealand ? as established in a survey last year by Korn-Ferry," Mr Ryall said.

Mr Ryall said the Government would continue to improve the momentum for appointing women directors and would also look at expanding the pool of people qualified for appointment to the boards of Crown companies.

"Restricting candidates to those who already have experience as directors limits our options. It's the old problem: you need experience to get a job, you need a job to get experience.

"We are looking at innovative solutions to expand the scope of appointees, making them more representative, while maintaining the high standard of skills and competence required."

Mr Ryall said the recent performance of major public companies had put corporate governance and the accountability of company directors under the spotlight.

"As the economy weathers the Asia crisis, this is a time for strong leadership, not just from Government, but also from the business sector. Strong board performance provides better prospects for increasing share-holder value, contributing to stronger economic growth which benefits the wider community."

Mr Ryall said the performance of directors and boards had been an important issue for the Government since the first SOEs were established in 1987.

"The Government takes a rigorous approach to reviewing the performance of boards who are responsible for businesses worth around $10 billion of taxpayers' money.

"We require SOE boards to undertake a review of the chairman, the directors and the board as a whole. Formalised written assessment is the norm, rather than the exception."