DEI

Japan has a goal of having women occupy at least 30% of executive roles by 2030

Less than 1% of top-1,600 Japanese companies led by women

By Dwaipayan Roy

Sep 18, 2024

What's the story

A recent survey has revealed a significant gender imbalance in Japan's corporate leadership.Out of the nation's leading 1,643 firms listed on the Tokyo Stock Exchange's prime market, only 13 are headed by female CEOs.This figure represents a mere 0.8% of these top-tier companies, according to financial statements from fiscal year 2023, analyzed by Kyodo news agency.The findings highlight Japan's sluggish progress in promoting diversity among its corporate decision-makers.

Diversity goals
Struggle to meet gender diversity targets

The low representation of women in CEO positions underscores the challenges faced by the Japanese government, in achieving its goal of having women occupy at least 30% of executive roles by 2030.This disparity persists even when considering a broader definition of "executive" that includes corporate officers, auditors, directors, and executive officers.

Global comparison
Lagging behind in global gender equality rankings

Japan's gender inequality extends beyond its corporate sector, as evidenced by its poor performance in international gender comparisons of politics and business.A 2022 OECD survey revealed that women held just 15.5% of executive positions in Japan, significantly lower than the figures for Britain (40.9%) and France (45.2%).Among the nations surveyed, only China and South Korea had a smaller proportion of female executives.

Gender disparity
Japan's 'glass ceiling index' and recent progress

Further highlighting Japan's gender disparity, an Economist survey last year ranked it 27th out of 29 developed economies on its "glass ceiling index."Despite these challenges, there has been some progress.The Kyodo survey found that the number of female board members has surpassed 3,000 - a significant increase from five years ago.Additionally, women have recently been appointed to several high-profile positions in Japan.

Leadership roles
Women breaking barriers in Japan's corporate world

In recent years, women have begun to break through Japan's corporate glass ceiling.Mitsuko Tottori, a former flight attendant, became the first Female President of Japan Airlines in January.In July, Naomi Unemoto was appointed as the country's first female prosecutor-general.Additionally, Tomoko Yoshino made history in 2021 by becoming the first woman to lead Rengo - Japan's largest trade union organization.

UAE announces women mandatory on board of directors for some firms from 2025

Picture used for illustrative purposes.

The Ministry of Economy has issued a ministerial decision mandating private joint-stock companies in the UAE to allocate at least one seat for women on their boards of directors after the completion of the current board's term.

This decision is a vital component of the nation's broader strategy to enhance diversity in the corporate sector and increase women's representation in leadership roles.

Aligned with the UAE's efforts to raise its global competitiveness rankings, the initiative demonstrates the leadership's unwavering commitment to empowering women, ensuring they play a vital role in the country's sustainable development.

The Ministerial Resolution No.137 of 2024, which addresses the regulation of private joint-stock companies' governance and operations, follows a similar initiative previously applied to public joint-stock companies. The earlier decision has already yielded positive results, enhancing institutional performance and economic outcomes.

Abdullah bin Touq Al Marri, Minister of Economy, emphasised that under the guidance of the UAE's wise leadership, the nation remains dedicated to strengthening women's contributions across various fields, especially in economic development.

The latest decision reinforces the UAE's vision to enhance gender balance, empowering women in the business sector and increasing their presence in leadership and decision-making roles. The initiative further strengthens the UAE's global competitiveness and its position as a leader in gender equality.

He further said, "Over the past decades, women in the UAE have consistently proven their capabilities, making significant contributions to the business, financial, and investment sectors.

Today, they are indispensable partners in economic growth and vital to the UAE's global competitiveness. This decision will bring added value to private joint-stock companies, enhancing their institutional performance by drawing on the insights and experiences of successful businesswomen in the country."

He also expressed his deep gratitude to Sheikha Manal Bint Mohammed Bin Rashid Al Maktoum, President of the UAE Gender Balance Council and wife of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, for her tireless efforts to increase women's participation in the economy.

Her initiatives, including the "Women on International Boards" programme and the "SDG 5 Pledge to Accelerate Gender Balance in the UAE Private Sector," have been instrumental in promoting gender balance and aim to raise women's representation in leadership positions to 30% by 2025.

Mona Ghanem Al Marri, Vice President of the UAE Gender Balance Council, highlighted the strategic collaboration between the Ministry of Economy and the Council, noting that the ministry's decision will have a significant impact on advancing gender balance.

"Guided by Sheikha Manal, the decision paves the way for greater women's representation on boards, a transformative step that will contribute to the UAE's comprehensive economic growth. Aligned with Her Highness's vision of women as essential partners in the nation's development across sectors, the decision reaffirms the UAE's strong record and global leadership in gender balance," she said.

"The decision reflects the close, fruitful collaboration between the ministry and the UAE Gender Balance Council, demonstrating the country's unwavering commitment to empowering women economically and enhancing their participation in the workforce.

This initiative not only advances social development but also contributes to raising the UAE's status as a prominent global investment destination. We look forward to deepening this partnership to advance the UAE's strategic goals and further cement its growing status as a global leader in gender balance," she added.

The Ministry of Economy further announced that the implementation of this decision will commence in January 2025, and urged private joint-stock companies to factor this requirement into their future board restructuring plans. This directive reflects the ministry's dedication to adopting global corporate governance best practices and ensuring that company boards represent all segments of society.

In 2021, the Board of the UAE Securities and Commodities Authority (SCA) issued a landmark decision that mandated public joint stock companies listed in Abu Dhabi and Dubai stock markets to have at least one woman board member. The latest decision of the Ministry of Economy to extend the requirement to private joint-stock companies further supports the UAE's vision to empower women and encourage them to play a greater role on the boards of listed companies.

WAM