Marked difference between sectors in proportion of women on boards of Finnish companies – healthcare and social services has the highest proportion and ICT the lowest

There are significant differences between sectors in the representation of women. In the information and communications technology (ICT) sector, for example, the proportion of women on boards is only 13 per cent, whereas in the healthcare and social services sectors women account for 43 per cent of board seats. Financing and insurance sector, meanwhile, have made huge progress with an increase of 20 per cent in board appointments for women. This gulf between sectors indicates that sectors traditionally considered to be male-dominant, such as ICT, have not managed to attract the same numbers of women for board positions as some other sectors.

Observing the last ten years, more and more international members are being appointed to boards, especially from Sweden and Estonia. The proportion of international members on boards is currently five per cent, while in the case of new appointments the proportion is roughly 11 per cent. The proportion of foreign persons appointed to the board by large companies has nevertheless fallen in recent years.

The survey results reveal that growth-orientation correlates to boards of directors becoming slightly younger and shorter in term.

“The board members of growth-oriented companies are on average slightly younger and the average length of their board membership is shorter. Growth requires a board to deploy different sets of skill at different times. Therefore, the speedier cycling of expertise and experience benefits the entire ecosystem,” comments Jakob Sandell, Research Manager at Tesi.

”Quite clearly, Finland’s economic growth must be accelerated. Diversified and multinational boards of directors can contribute to achieving this goal. Diversified backgrounds and multifaceted experience bring new perspectives to board work, and these play a crucial role when Finnish companies pursue a place in global markets,” says Tesi’s CEO Pia Santavirta.

The review covers all companies employing at least five people except for the Finnish subsidiaries of international companies. The results include altogether some 17,000 Finnish companies and 62,000 board members. Companies employing less than five people and the boards of Finnish subsidiaries of international companies were excluded from the review because their boards of directors are typically composed of operative management. Tesi has been mapping the board compositions of Finnish companies since 2019.

Read the survey here.