Markets
Visualizing the Rise of Women on Boards of Directors Worldwide
The Rise of Women on Boards of Directors Worldwide
Women’s representation in the boardroom is a mixed bag. The number of women on boards is rising across the globe—but the rate of increase has slowed for three of the past four years.
Based on MSCI research of All Country World Index (ACWI) constituent companies, the graphic above reveals a 10-year trend of women’s representation on corporate boards, and projects three future scenarios on the way to parity.
ESG Goals: The Path to Parity
The ESG ecosystem considers 30% representation to be a critical milestone on the road to reaching gender parity on corporate boards of directors.
Following a small uptick in 2019—and two years of slowed growth from 2017 to 2018—the rise of women on boards slowed again in 2020, gaining 0.6 percentage points (p.p.).
Based on different forward-looking scenarios, here’s how long it could take to reach equal representation:
Progressive scenario | Business-as-usual scenario | Deceleration scenario | |
---|---|---|---|
Years to reach 30% Women on Boards (WoB) | 6 years | 9 years | 16 years |
Year we may reach >50% WoB | 2039 | 2045 | 2070 |
Source: MSCI ESG Research LLC as of Oct. 30, 2020.
On the whole, parity on corporate boards could be reached as early as 2039 or as late as 2070.
Women’s Representation: State of the Unions
MSCI research reveals trends that highlight significant traction. In 2020, fewer women became directors, but all-male boards continued to decline worldwide to 17% in 2020 (a 2 p.p. drop) among the ACWI contingent.
This trend is partially driven by emerging markets, where all-male boards dropped to 31%, from over 34% initially. Hong Kong is one of the few countries that actually experienced an increase of 5 p.p. in all-male boards. In contrast, Saudi Arabia’s share reduced by 8 p.p. to 86% in 2020.
Country | % Companies with 3+ WoB | Country | % Companies with no WoB |
---|---|---|---|
🇳🇴 Norway | 100% | 🇶🇦 Qatar | 100% |
🇮🇹 Italy | 100% | 🇸🇦 Saudi Arabia | 86% |
🇧🇪 Belgium | 100% | 🇦🇷 Argentina | 67% |
🇵🇹 Portugal | 100% | 🇭🇺 Hungary | 67% |
🇫🇷 France | 100% | 🇰🇷 South Korea | 65% |
🇸🇪 Sweden | 91% | 🇦🇪 UAE | 63% |
🇫🇮 Finland | 91% | 🇨🇱 Chile | 44% |
🇪🇸 Spain | 90% | 🇲🇽 Mexico | 38% |
🇬🇧 UK | 85% | 🇭🇰 Hong Kong | 37% |
🇦🇹 Austria | 83% | 🇮🇩 Indonesia | 36% |
Source: MSCI ESG Research LLC as of Oct. 30, 2020.
Europe continues to lead the world in gender representation on boards. All top 10 countries with three or more women directors are found in the region, with countries like Norway, Italy, and Belgium being the closest to reaching parity.
Across sectors, utilities experienced the largest increase in companies with three or more women on boards, with a 9% jump between 2019-2020.
The Other Glass Ceiling: The C-Suite
The number of women CEOs remains low across all regions, but CFO roles show more promise.
MSCI World, 2017 | MSCI World, 2020 | MSCI EM, 2017 | MSCI EM, 2020 | |
---|---|---|---|---|
Women in CEO roles | 4.7% | 4.9% | 3.3% | 4.8% |
Women in CFO roles | 9.4% | 12.1% | 9.8% | 18.7% |
Source: MSCI ESG Research LLC as of Oct. 30, 2020.
This global rise is also largely thanks to emerging markets. Since 2017, emerging market companies have exhibited higher percentages of CFOs than companies in developed markets, and the difference is widening.
The Glass Ceiling Isn’t Unbreakable
As MSCI reports, the progress towards parity in boardrooms does not necessarily represent the workplace. Emerging research suggests that women have been more negatively impacted by the pandemic’s economic fallout—potentially undoing several years’ worth of improvements.
However, developing nations still show promising results in key indicators of gender diversity, with further opportunity to grow corporate bottom lines.
As more post-pandemic recovery data becomes available amidst vaccine rollouts, we’ll gain a better sense of whether we’re still on track to follow these long-term trends.
Markets
How Disinflation Could Affect Company Financing
History signals that after a period of slowing inflation—also known as disinflation—debt and equity issuance expands.


How Disinflation Could Affect Company Financing
The macroeconomic environment is shifting. Since the second half of 2022, the pace of U.S. inflation has been dropping.
We explore how this disinflation may affect company financing in Part 2 of our Understanding Market Trends series from Citizens.
Disinflation vs. Deflation
The last time inflation climbed above 9% and then dropped was in the early 1980’s.
Time Period | March 1980-July 1983 | June 2022-April 2023* |
---|---|---|
Inflation at Start of Cycle | 14.8% | 9.1% |
Inflation at End of Cycle | 2.5% | 4.9% |
* The June 2022-April 2023 cycle is ongoing. Source: Federal Reserve. Inflation is based on the Consumer Price Index.
A decrease in the rate of inflation is known as disinflation. It differs from deflation, which is a negative inflation rate like the U.S. experienced at the end of the Global Financial Crisis in 2009.
How might slowing inflation affect the amount of debt and equity available to companies?
Looking to History
There are many factors that influence capital markets, such as technological advances, monetary policy, and regulatory changes.
With this caveat in mind, history signals that both debt and equity issuance expand after a period of disinflation.
Equity Issuance
Companies issued low levels of stock during the ‘80s disinflation period, but issuance later rose nearly 300% in 1983.
Year | Deal Value |
---|---|
1980 | $2.6B |
1981 | $5.0B |
1982 | $3.6B |
1983 | $13.5B |
1984 | $2.5B |
1985 | $12.0B |
1986 | $24.2B |
1987 | $24.9B |
1988 | $16.9B |
1989 | $12.9B |
1990 | $13.4B |
1991 | $45.2B |
1992 | $50.3B |
1993 | $95.3B |
1994 | $63.7B |
1995 | $79.7B |
1996 | $108.7B |
1997 | $106.5B |
1998 | $97.0B |
1999 | $142.8B |
2000 | $156.5B |
Source: Bloomberg. U.S. public equity issuance dollar volume that includes both initial and follow-on offerings and excludes convertibles.
Issuance grew quickly in the years that followed. Other factors also influenced issuance, such as the macroeconomic expansion, productivity growth, and the dotcom boom of the ‘90s.
Debt Issuance
Similarly, companies issued low debt during the ‘80s disinflation, but levels began to increase substantially in later years.
Year | Deal Value | Interest Rate |
---|---|---|
1980 | $4.5B | 11.4% |
1981 | $6.7B | 13.9% |
1982 | $14.5B | 13.0% |
1983 | $8.1B | 11.1% |
1984 | $25.7B | 12.5% |
1985 | $46.4B | 10.6% |
1986 | $47.1B | 7.7% |
1987 | $26.4B | 8.4% |
1988 | $24.7B | 8.9% |
1989 | $29.9B | 8.5% |
1990 | $40.2B | 8.6% |
1991 | $41.6B | 7.9% |
1992 | $50.0B | 7.0% |
1993 | $487.8B | 5.9% |
1994 | $526.4B | 7.1% |
1995 | $632.7B | 6.6% |
1996 | $906.0B | 6.4% |
1997 | $1.3T | 6.4% |
1998 | $1.8T | 5.3% |
1999 | $1.8T | 5.7% |
2000 | $2.8T | 6.0% |
Source: Dealogic, Federal Reserve. Data reflects U.S. debt issuance dollar volume across several deal types including: Asset Backed Securities, U.S. Agency, Non-U.S. Agency, High Yield, Investment Grade, Government Backed, Mortgage Backed, Medium Term Notes, Covered Bonds, Preferreds, and Supranational. Interest Rate is the 10 Year Treasury Yield.
As interest rates dropped and debt capital markets matured, issuing debt became cheaper and corporations seized this opportunity.
It’s worth noting that debt issuance was also impacted by other factors, like the maturity of the high-yield debt market and growth in non-bank lenders such as hedge funds and pension funds.
Then vs. Now
Could the U.S. see levels of capital financing similar to what happened during the ‘80s disinflation? There are many economic differences between then and now.
Consider how various indicators differed 10 months into each disinflationary period.
January 1981 | April 2023* | |
---|---|---|
Inflation Rate Annual | 11.8% | 4.9% |
Inflation Expectations Next 12 Months | 9.5% | 4.5% |
Interest Rate 10-Yr Treasury Yield | 12.6% | 3.7% |
Unemployment Rate Seasonally Adjusted | 7.5% | 3.4% |
Nominal Wage Growth Annual, Seasonally Adjusted | 9.3% | 5.0% |
After-Tax Corporate Profits As Share of Gross Value Added | 9.1% | 13.8% |
* Data for inflation expectations and interest rate is as of May 2023, data for corporate profits is as of Q4 1980 and Q1 2023. Inflation is a year-over-year inflation rate based on the Consumer Price Index. Source: Federal Reserve.
The U.S. economy is in a better position when it comes to factors like inflation, unemployment, and corporate profits. On the other hand, fears of an upcoming recession and turmoil in the banking sector have led to volatility.
What to Consider During Disinflation
Amid uncertainty in financial markets, lenders and investors may be more cautious. Companies will need to be strategic about how they approach capital financing.
- High-quality, profitable companies could be well positioned for IPOs as investors are placing more focus on cash flow.
- High-growth companies could face fewer options as lenders become more selective and could consider alternative forms of equity and private debt.
- Companies with lower credit ratings could find debt more expensive as lenders charge higher rates to account for market volatility.
In uncertain times, it’s critical for businesses to work with the right advisor to find—and take advantage of—financing opportunities.

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