New findings show Japan is 'still slow to increase diversity' in leadership
Out of 1,643 top-listed companies in Japan, only 13 of them have female chief executive officers, according to a new survey from Kyodo News.
The findings, which were based on analysis of fiscal 2023 financial statements, found that the percentage of female chief executives in the Tokyo Stock Exchange's top-tier Prime Market is at 0.8%.
Among 1,614 Prime Market companies that have been on the list for more than five years, the number of female CEOs ranged between seven and nine for three years through fiscal 2022.
The results indicate that the Asian country is "still slow to increase diversity" in leadership, according to the Kyodo report.
Ryusuke Ishii, a manager at the Japan Research Institute, partly attributed the slow diversity growth to the recruitment of top officers from outside businesses instead of internal promotions.
Leadership diversity has been a persisting problem in Japan in addition to the significant gender pay gap.
An analysis from WTW in 2023 found that women account for 13.11% of board members and officers' roles, and just 9.47% of managerial roles on average.
"Larger companies by market capitalisation are more likely to appoint female board members and officers but lag smaller companies when it comes to appointing women in managerial roles," the WTW report read.
To promote boardroom diversity, the Japanese government last year introduced a draft policy package with a target of 20% female executive roles at top companies by 2023, NHK World Japan reported.
The draft also aims for companies at the Tokyo Stock Exchange's Prime Market to have at least one female board member by around 2025.
Since the draft policy was unveiled, there has been significant progress in Japanese companies for women.
According to Kyodo's analysis, the number of female executives doubled from 1,502 in fiscal 2019 to reach 3,052 (16.2%) in 2023.
Takaaki Kushige, Senior Director and Japan Practice Leader, Executive Compensation & Board Advisory, WTW, previously said disclosing gender diversity indicators can help companies create sustainable value and advance gender equality.
"However, to engage talented women and provide useful information to investors, companies must go beyond mere numerical disclosures at the corporate level," Kushige previously said in a statement.
"They must also convey supplemental information about the current state of gender diversity and provide detailed actions that demonstrate commitment to improving their corporate culture. The extent to which these efforts are managed globally can become a leading indicator of global management excellence."
