Rise of Women on Boards Paves the Way for More Women Chairs

Women leaders’ representation in the board room is improving. Despite joining the boards at a younger age, women are not just increasing their share of board seats; they are also increasingly closing the experience gap and being appointed to committee chair, vice chair/SID and chair roles.

Research shows the presence of women on boards improves the quality of discussion, resulting in more inclusive and effective decision-making within organizations—and better alignment with stakeholders’ fast-evolving expectations

To understand more about the changing face of European boards, Russell Reynolds Associates analyzed the differences in route to the top of 1483 board directors on 172 boards of leading companies across France, Germany, the Netherlands, Norway, and the United Kingdom^‡ in May of 2020 and May of 2023, learning that:

• Women’s representation on boards is at an all-time high. In 2023, women held 44% of all board seats across Europe, up from 38% in 2020.
• The pipeline of women chairs is strengthening. There are more women in committee leadership roles, in vice or deputy chair/senior independent director (SID) positions, as well as in the chair seat itself, creating a more robust pipeline of highly qualified women candidates for future chair positions.
• Internal chair appointments are the norm. 62% of men and 67% of women chair placements were through internal board appointments, highlighting the importance of developing the next generation of board leadership and robust chair succession planning.

Since 2020*, we have seen:

^{Percentage Points (PP)}

Women’s representation on boards is at an all-time high

Women’s representation on European boards has increased markedly over the past three years, with women now holding 44% of all board seats, up from 38% in 2020 (Figure 1). Various directives (EU and national legislation) stipulate that a minimum of 40% of the non-executive director roles should be held by members of the under-represented sex by 2026.

Interestingly, the UK has seen the biggest increase—9% between 2020 and 2023—without mandatory board-level gender quotas. This indicates that, while quotas have certainly helped in improving women’s representation in several countries, significant progress can also be achieved when organizations embrace gender diversity as indispensable, rather than required for compliance.

Figure 1: Representation of changes for women on European boards between 2020 and 2023*

^{Source: RRA 2023 analysis, n=1,483 board members of companies across France, Germany, the Netherlands, Norway, and the United Kingdom}

Directors are most likely to bring commercial experience^§ to boards, with 73% of men and 63% of women directors bringing this to the table. Encouragingly, women directors are more likely to bring this experience now than they were in 2020, as we observed an overall 5pp increase on this measure. Interestingly, there is a link between the increasing share of women with commercial experience and the age at which they’re joining boards—likely due to organizations having made a concerted effort to improve gender balance on boards but having to recruit women from N-1 level due to underrepresentation of women in CEO roles. In addition, organizations are increasingly adopting executive development programs and women executives are also actively pursuing board opportunities to hone their skills further. Notably, women directors are joining boards an average of four years earlier than men, around age 59, often while still holding executive positions. And while women are still severely underrepresented at the CEO level globally, we have observed that more women leaders are moving into the top job after having held a non-executive director position on said company’s board—a move that will ideally increase the number of future women CEOs.

The pipeline of women chairs is strengthening

The number of women in chair roles has seen a slow yet steady increase from 4% in 2020 to 10% in 2023. Encouragingly, women’s representation in other board leadership roles has significantly increased, particularly in the positions of vice or deputy chair/SID and committee chairs (Figure 2). In 2023, women held 41% of committee chair roles, up from 28% in 2020. Likewise, women now represent 35% of vice or deputy chair/SID or seats, up from 24% in 2020.

This rise in women’s representation in board leadership roles is noteworthy, as it suggests that more women may reach the chair role in the future. Our analysis shows that 83% of externally appointed women chairs previously held vice or deputy chair/SID or committee chair roles on another board (Figure 3). Similarly, of the women chairs that were internally promoted, 50% have previously served as vice or deputy chair/SID on the same board ahead of their promotion.

Women chairs increasingly have a commercial track record (up 21 percentage points) and comprise of more plurals (Figure 4). Furthermore, there has been a notable increase (31%) in the appointment of international women talent to the chair role. This suggests that organizations, in addition to valuing local expertise, are also recognizing the need for international perspectives and experiences in their leadership. When paired with robust succession planning, this trend has the potential to contribute to a diversified, globally oriented board.

Figure 2: Representation changes for women in European chair, vice and deputy chair/SIDs, and committee chair roles between 2020 and 2023*

^{Source: RRA 2023 analysis, n=1,483 board members of companies across France, Germany, the Netherlands, Norway, and the United Kingdom}

Figure 3: Route to the top for internally and externally appointed women chairs in 2023

^{Source: RRA 2023 analysis, n=1,483 board members of companies across France, Germany, the Netherlands, Norway, and the United Kingdom}

Figure 4: Comparison of route to the top for women and men in chair position in 2023 vs 2020

^{Source: RRA 2023 analysis, n=1,483 board members of companies across France, Germany, the Netherlands, Norway, and the United Kingdom}

Internal chair appointments are the norm

In 2023, 62% of men and 67% of women chair placements were internal board appointments. This demonstrates a marked increase of 20pp and 7pp respectively since 2020 (Figure 5).

This trend towards internal chair appointments highlights the importance of developing the next generation of board leadership within an organization, as well as robust chair succession planning. Naturally, supporting board members, including women leaders, through internal development and mentoring significantly improves the likelihood of being promoted to the chair role.

Figure 5: Comparison of hiring source for women and men in chair roles in 2023 vs 2020

^{Source: RRA 2023 analysis, n=1,483 board members of companies across France, Germany, the Netherlands, Norway, and the United Kingdom}

Looking forward: Momentum for change in women’s representation on boards

We’ve observed a significant rise of women in board leadership roles, including the role of chair. As stakeholders (including investors, customers, and employees) increasingly recognize the contribution and capabilities of women on boards, the growing presence of women leaders on European boards is likely to positively impact an organization’s performance and reputation.

Beyond this, achieving parity in the boardroom offers the potential for considerable knock-on benefits. Women directors’ influence can extend beyond their organizations, driving cultural shifts across industries and markets. Though progress to this point has taken some time, the stage has now been set for exponential change across European organizations—and beyond.

Notes

^{* Board membership data from 2023 is based on the constituents of each index as of 2020 for comparative purposes. It does not account for companies that moved onto the indices and replacements were made for companies that moved off the indices since then. However, we are confident all data is representative.}

^{† Our analysis does not include employee representatives, which may influence the total numbers.}

^{‡ These consisted of France’s top 40, Germany’s top 30, Netherlands’ top 25, Norway’ top 25 and United Kingdom’s top 50 publicly listed companies at time of initial study (May 2020). Please refer to the note on methodology for further details.}

^{§ Commercial experience is being defined as CEO, regional/business unit leader, COO, and other commercial roles (like marketing, business development etc.)}

Authors

• Laura Sanderson leads Russell Reynolds Associates’ operations in the UK and oversees the firm’s Board & CEO Advisory Partners team throughout Europe. She is based in London.
• Jacques Bouwens is a senior member of the Board & CEO Advisory Partners Practice at Russell Reynolds Associates. He is based in Amsterdam.
• Martin Gunn is a member of Russell Reynolds Associates’ Board and CEO Advisory Partners Knowledge team. He is based in London.
• Soumya Sankar is a member of Russell Reynolds Associates’ Board and CEO Advisory Partners Knowledge team. She is based in Munich.
• Sarah Flören leads Russell Reynolds Associates’ Healthcare Knowledge team. She is based in Amsterdam.
• Leah Christianson is a member of Russell Reynolds Associates’ Center for Leadership Insight. She is based in San Francisco.
• Susie Sell is an Editor at Russell Reynolds Associates.

Contributors

The authors would like to thank Ravi Banwani, Surbhi Sehrawat, Deepanjana Deb, Chilakanti Ahalya, Samrity Arora, Mariam Sajid, and Surbhi Khatri for their contributions to this research.

Notes on methodology

1483 board directors on 172 boards across the United Kingdom, France, Germany, Norway, and the Netherlands in 2020 and 2023. The companies analyzed for each country is as follows:

• Netherlands: Aalberts, ABN AMRO, Adyen, Aegon, Ahold Delhaize, Akzo Nobel, Arcelormittal, ASML, ASR Nederland, DSM, Galapagos, Heineken, IMCD, ING, KPN, NN Group, Royal Philips, Randstad, RELX, Royal Dutch Shell, Takeaway.com, Unibail-Rodamco-Westfield, Unilever, Vopak, and Wolters Kluwer

• France: Accor, Air Liquide, Airbus, Atos, Arcelormittal, Axa, BNP Paribas, Bouygues, Capgemini, Carrefour, Credit Agricole, Danone, Engie, Essilor, Luxottica, Kering, L’Oreal, Lafargeholcim, Legrand, LVMH, Michelin, Orange, Pernod Ricard, PSA Peugeot Citroen, Publicis, Renault, Safran, Saint-Gobain, Sanofi, Schneider Electric, and Societe Generale. Please note that in the 2023 analysis, PSA Peugeot Citroen and Lafargeholcim, were replaced with Solvay and Hermes, respectively.

• Germany: Adidas, Allianz, BASF, Bayer, BMW, Beiersdorf, Continental, Covestro, Daimler, Deutsche Bank, Deutsche Boerse, Deutsche Lufthansa, Deutsche Post, Deutsche Telekom, E.On, Fresenius Medical Care, Fresenius Se & Co, Heidelbergcement, Henkel, Infineon Technologies, Linde, Merck, Munchener Ruckversicherungs, RWE, SAP, Siemen, Thyssenkrupp, Volkswagen, Vonovia, and Wirecard. Please note that in the 2023 analysis, Linde and Wirecard were replaced with Symrise and Hannover Rueckversicherung, respectively.

• The UK: Centrica, Coca-Cola, Compass, CRH, Croda International, DCC, Diageo, Evraz, Hargreaves Lansdown, Hikma Pharmaceuticals, Hiscox, HSBC, Imperial Brands, Informa, Intercontinental Hotels, International Consolidated Airlines, Intertek, ITV, JD Sports, Johnson Matthey, Kingfisher, Land Securities, Legal & General, Lloyds Banking, London Stock Exchange, M&G, Meggitt, Melrose Industries, Mondi, Morrisons, National Grid, Next, NMC Health, Ocado, Pearson, Persimmon, Phoenix, Polymetal International, Prudential, Reckitt Benckiser, Relx, Rentokil Initial, Rightmove, Rio Tinto, Rolls-Royce, Royal Bank Of Scotland, Royal Dutch Shell, RSA Insurance, Sage, Sainsbury’s, Schroders, Scottish Mortgage Investment Trust, Segro, Severn Trent, Smith & Nephew, Smith, D.S., Smiths, Smurfit Kappa, Spirax-Sarco Engineering, SSE, St. James's Place, Standard Chartered, Standard Life Aberdeen, Taylor Wimpey, Tesco, Tui, Unilever, United Utilities, Vodafone, Whitbread, and WPP. Please note that in the 2023 analysis, BHP Group, Carnival, and Ferguson were replaced with Croda, Flutter, and Rentokill Initial, respectively.

• Norway: Aker, BW LPG, DNB, DNO, Equinor, Gjensidige Forsikring, Golden Ocean Group, Grieg Seafood, Leroy Seafood Group, Mowi, Nel, Norsk Hydro, Norwegian Air Shuttle, Orkla, P/F Bakkafrost, Petroleum Geo Services, Salmar, Schibsted, Storebrand, Subsea 7, Telenor, TGS Nopec Geophysical, and Yara International.