The most recent survey data from 2,257 companies listed on the National Stock Exchange has revealed that only 45 of them have a woman occupying the chief financial officer or director-finance role. This number is significantly low compared to the total number of companies surveyed, indicating that there is still a long way to go in achieving gender diversity in top financial positions.
According to Rahul Kakkar, partner and India head, CFO Practice at the leadership advisory and senior executive search firm Korn Ferry, there has been a growing push for more women professionals in CFO roles. However, he also pointed out that the talent pipeline for women in finance varies across industries. While the services sector has seen greater success in cultivating and retaining high-potential, senior female professionals, the core industrial and manufacturing sectors still face limitations in their talent pipeline. Nevertheless, there is a trend of openness to hiring talent from other sectors, prioritising potential over immediate readiness.
MK Sharma, chairman and independent director at spirits maker Diageo, acknowledged the visible change in the addition of female leaders on corporate boards. He noted that with active corporate legislation for hiring women leaders, there is now a growing pool of women talent in CFO and legal roles. This shows that there has been progress, although it may not have been as visible in the past as it is today.
The call for gender diversity is not only coming from board members but also from investors who are looking to allocate funds to companies that are committed to social good. The increase in female leaders on corporate boards has been a positive development, driven by regulations and active efforts from both corporates and investors.
A female CFO at a leading company emphasized that women have been increasingly breaking into the male-dominated space at several companies due to regulations. This has led to a shift in the mindset of management, recognising the potential of women as leaders. She pointed out that many progressive corporates are now actively seeking women leaders and that women have been proving themselves to be just as capable, if not better than their male counterparts in many instances.
Abhinav Sharma, partner at PSD & Associates, a chartered accountancy firm, provided insights into the lower number of women in CFO roles compared to other functions within finance. He noted that while 40% of students who qualify for chartered accountancy courses are women, they tend to gravitate towards consulting firms or specialised areas such as mergers and acquisitions. However, there has been a slow but gradual change in this trend as women are now more willing to take career risks and aim for higher positions within corporate finance.
The recent appointments of women in CFO roles, such as Preeti Gupta Mohanty at Schneider Electric India, Suman Hegde at Jubilant Foodworks, and Aparna Iyer at Wipro, indicate a positive shift towards increased gender diversity in finance leadership roles. Atul Vohra, managing partner at leadership search firm Transearch India, highlighted that there is a growing imperative to identify and hire women professionals in nearly 30% of CFO mandates. He also emphasised that women have excelled in the finance function and are highly respected from an ethics and diligence perspective.
The survey findings demonstrate that while progress has been made, there is still a significant need for continued efforts to promote gender diversity among CFOs. The shift towards more women in finance leadership roles is not only beneficial for individual companies but also contributes to the overall social and economic advancement.
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