The participation rate of women in finance and related fields continues to lag in India, with the average figure being just one woman for every eight people on the payroll, according to a CFA Institute sample study of 134 companies.

The global non-profit association of investment professionals examined the disclosures of 134 public companies in their Business Responsibility and Sustainability Report (BRSR) for 2021-22 (FY22).

The BRSR Framework is a set of sustainability disclosures mandated by the Securities and Exchange Board of India (Sebi) in 2021 and Indian companies were asked to provide a breakdown of issues such as workforce composition, pay, turnover and other factors gender to report. The disclosures are voluntary for fiscal year 22 and mandatory for the 1,000 largest companies from 2022 to 2023.

The study found that career progression for women in sectors with large workforces and participation rates, such as information technology and financial services, was low compared to other sectors.

At financial services companies, for example, women made up 21.7 percent of employees and 15.9 percent of key personnel.

In FY22, the average median female-to-male pay ratio was 0.97, indicating gender pay parity. However, the average female-to-male pay ratio drops to 0.52 for key executives and 0.64 for directors, according to the CFA Institute’s study called Mind the Gender Gap.

The issue is also gaining momentum as Sebi has proposed a new environmental, social and governance assessment framework that puts more emphasis on broader social standards such as gender diversity and the percentage of gross wages paid by companies to women.

“Women in India face various additional barriers to their careers. And measuring different gender-related parameters in the workplace is a good start to understand the issues as the annual reports will provide extensive time-series data,” said Rajendra Kalur, Chair of the CFA Society India.

To encourage female participation and narrow the pay gap, the CFA Institute has recommended that companies improve their disclosures, particularly around median pay, to provide additional perspectives on participation, career trajectories and potential pay gaps.

“There is an urgent need to improve diversity within senior management and key personnel, and companies are encouraged to provide qualitative disclosures on how they work to improve women’s career progression,” it said.

Currently, the Capital Markets Authority requires all listed companies to have at least one independent woman on their board of directors. However, some companies, mainly public companies (PSUs), have not met this requirement.

In the past, India Inc has cited reasons such as the unavailability of suitable and qualified women for the limited presence of female directors on its boards.

In the case of PSUs, the government’s appointment process is blamed for the lack of representation of women on their boards.

How thin is the glass ceiling?

Results

The average participation rate of women across the company was 12.7%

The median female-to-male pay ratio decreased to 0.52 for key management personnel and 0.64 for directors

69% of companies did not have women in their key management positions

Women had higher turnover than men (18.3% vs. 16.1% for men)

recommendations

Companies need to improve disclosure, particularly around median compensation

Beyond board diversity, there is an urgent need to improve diversity in senior management

In addition to mentoring, sponsorship is also required to ensure career advancement

There is a need to pursue gender diversity in talent acquisition and in the talent development pipeline