Corporate India continues to grapple with significant gender disparity, particularly at senior levels of management, according to the second edition of the Mind the Gender Gap report.
The study, jointly conducted by CFA Institute and CFA Society India, paints a concerning picture of workforce diversity and pay equity.
It is based on a sample of voluntary Business Responsibility and Sustainability Report (BRSR) disclosures from 300 companies representing a workforce of over 8 million individuals.
Stark Underrepresentation at Senior Levels
The report highlights that women occupy a disproportionately small share of senior positions. In the Board of Directors (BoDs) roles, only 18.4 percent of positions are held by women, reflecting a pronounced gender gap. The disparity is even more pronounced among Key Managerial Personnel (KMPs), where just over 10 percent are women. Alarmingly, nearly two-thirds of the companies analyzed have no female KMPs at all. Among the companies with female KMPs, 80 percent have only one, underscoring a systemic lack of representation in key decision-making roles.
Gender Pay Gap Persists
The issue of pay equity is equally troubling. Female directors earn just 44 percent of the median salary of their male counterparts, while female KMPs receive less than 25 percent of the remuneration paid to male KMPs. This disparity extends across all roles. Male directors earn 21 times the median remuneration of male employees and 24 times that of male workers. Male KMPs fare even better, earning 35 times the median remuneration of male employees and 40 times that of male workers.
Sectoral Trends in Gender Representation
The Information Technology (IT) sector stands out as the most inclusive, employing 34% women, followed by the consumer discretionary (25 percent) and financial (24 percent) sectors. On the other end of the spectrum, the utilities sector records the lowest female participation at just 4 percent.
When it comes to gender representation on BoDs, the real estate, IT, consumer staples, healthcare, and consumer discretionary sectors show a more equitable distribution. However, the financial services and energy sectors reveal the most pronounced imbalances, with women occupying significantly fewer board positions.
Among KMPs, the disparity remains glaring across all sectors, with no sector achieving a male-to-female ratio lower than 5:1. The real estate sector exhibits the widest gap, followed by the utilities and communication services sectors.
Commenting on the report findings, Arati Porwal, Country Head, India, CFA Institute, said, “The second edition of ‘Mind the Gender Gap’ report highlights the pressing need for stronger gender equality initiatives within Indian corporate structures. While there has been significant progress, the data reveals persistent gaps in women’s representation and remuneration parity, particularly at the senior positions, which require immediate attention from both companies and policymakers”.
The report also reveals an encouraging trend in data transparency, with more Indian companies disclosing BRSR data, while raising awareness about the challenges and opportunities related to gender diversity and DEI strategies, she said.
Companies with diverse leadership teams demonstrate greater innovation, improved decision-making, and enhanced financial performance. “To achieve this, Indian companies must encourage a culture of inclusion, by attracting and retaining female talent, and ensure fair and equitable remuneration practices”, she said.
A Call to Action
As India aspires to solidify its position as a global economic powerhouse, bridging the gender gap in corporate workplaces is not just a moral imperative but also an economic one. Studies have consistently shown that diverse teams perform better, drive innovation, and deliver superior financial results.
The report’s findings serve as a wake-up call for corporate India to prioritize gender equity. Only by addressing the structural barriers to women’s participation and advancement can the country achieve truly inclusive and sustainable growth.
Rajesh Sehgal, CFA, Chairperson, CFA Society India, added, “The level of women’s participation in the workforce and in boardrooms across India, continues to be persistently low as highlighted in our latest edition of the report.
Corporate India must adopt meaningful initiatives and inclusive strategies to retain female talent, diminish the remuneration gaps, and subsequently pave the way for Indian workplaces to become more diverse and inclusive for women and differently-abled individuals”.