‘Women have minor role in boardrooms of Jordanian companies’

AMMAN — Despite constituting a large portion of society in Jordan, women have a minor presence in boardrooms and in senior decision-making positions, according to a new report.

Conducted by the World Bank’s International Finance Corporation (IFC), the “Gender Diversity in Jordan” report said women represent 15.6 per cent of the labour force in the Kingdom. 

Yet in publicly listed companies, where the average board size is eight members, only 3.54 per cent of board members are women, and women hold only 21 per cent of senior decision-making positions. 

Of the 237 publicly held companies, 185 (78 per cent) have no women on their boards, the study said. 

In private shareholding companies, the report added that only 9.1 per cent of board members are women, and women chair 2.56 per cent of companies. Of the 930 companies, 717 (77 per cent) have no women on their boards. 

“These statistics are some of the lowest in the world, even compared to other Middle Eastern countries,” the publication said, adding that by contrast, the percentage of females in top management positions in high-income countries is 23 per cent and can be up to over 30 per cent in countries such as the Philippines.

The research posted on the IFC website demonstrates the degree of involvement by women in boardrooms and senior decision-making positions in the corporate world; the value of their presence when they are involved in those positions; and some of the challenges that women face in reaching such decision-making positions.

According to the IFC report, one of the key corporate governance challenges “we observed in Jordan and the Middle East” is that the composition of boards appears to be ad hoc, in that a variety of social, political and cultural influences plays a large part in determining board membership, when greater emphasis should be placed on independence of directors and diversity in the boardroom. 

“Most Jordanian companies are family businesses, so choosing board members is primarily based on personal relationships and not on the organisation’s need or professionalism, and accordingly such businesses do not recognise the importance of separating ownership and management — until crises happen,” the report added. 

According to the study, there is a connection between gender diversity and the financial performance of companies. 

Improved diversity, it said, ensures greater effort across the board and provides for a mix of leadership skills.