The appointment of women on boards of directors of publicly listed and/or licensed companies in Malta

Abstract

Women director appointments on boards of public listed and/or licensed companies in Malta registered on the Malta Stock Exchange plc only account for 10.7% of all appointees. This is considerably less than the EU average of 33% for board members in STOXX Europe 600 Companies. This paper’s main research objective is to assess the current situation in the appointment of women on these boards. Based on the similarity-attraction theory and resource dependency theory, the author investigated the process by which women are appointed on boards and elicited underlying reasons for this gender shortfall. Furthermore, current views on the adoption of gender quotas will be explored. The research methodology was based on a qualitative approach. Two research tools were adopted; the first, an online questionnaire submitted to women directors and the second, in-depth structured interviews conducted with chairpersons, the Maltese regulator, and Women Directors Malta. Thematic findings emerged indicating actual practices adopted by companies in considering women board appointments and shed light on the challenges in promoting gender diversity. The initial and informal process of appointing directors on these Boards was examined. The nomination committee plays a crucial role in identifying potential candidates. The current mode of board selection limits the pool of qualified women candidates. Boards need to cast a wider net in search of relevant skills sets. Women face significant career barriers and challenges to be appointed on Boards. It is claimed that women candidates do not always enjoy a ‘high visibility’ profile, and some argue that they seem to be under the radar. They may not be networking sufficiently in spheres of influence where the dynamics of boardroom politics pan out. Potential women candidates need to engage with networks that include influential powerbrokers. The paper concludes with a brief discussion of gender quotas as a corrective mechanism intended to address the under-representation of women on boards.