Boards cannot continue to be a comfortable men's club, said Finance Minister Nirmala Sitharaman on Friday as she batted for more women representation in boards.
Sitharaman, who was speaking at the Women Directors' Conclave at the Bombay Stock Exchange on September 16, said that women need to cross thresholds that hold them back from joining boards.
She said boards were happier welcoming a professional who was a man. "I am not saying they are unhappy welcoming women," she clarified.
Sitharaman said she heard the former Indian women's cricket team's captain Mithali Raj had said she looked up to Sachin Tendulkar while growing up as there were no women cricketers. "Mithali became that icon. There should be more Mithalis in the board room," she said.
Also said: FM Nirmala Sitharaman compares India Inc to Hanuman and says industry not aware of own strength
The FM said women are usually hesitant to undergo the required training to become a director. She said many organisations have not found women directors. "As much as we say, in case of the women who made it big, we also have to take that bold step forward," she said.
The Finance Minister said there can be men who are condescending, but there are also many who are not.
"I wouldn't be standing in front of you if the tough world made it impossible for women to succeed," she said.
The Finance Minister said she had entered the Bombay Stock Exchange (BSE) for the first time on Friday. "Every Indian should be proud of BSE. It is an iconic institution," she said.
She said when well-managed companies put out data that is there for everyone to see, it helps the retailers and investors. "Women sitting in the board rooms of such companies have to add more value to this. Women have to get in the boards of such companies," she said. She reiterated that it cannot be a comfortable men's club anymore. "I am not discouraging socialisation among male members of boards, but it is a little difficult for women to be a part of," she said.
The onus also lies on the boards to engage women. "Boards should make efforts to bring women on board. They have to rethink the way they want to engage women," she said.
She said the overall number of women directors have increased post the BSE mandate in 2013. "Around 58 percent are independent women directors and 48 percent are non-independent women directors," she said.
According to the Companies Act 2013, certain class of companies are mandated to have at least one woman director on their board.
"Nifty50 companies have often hired the same women for their boards. There are also attempts to evade the mandate to include women in boards," she said.
The finance minister said 15 percent of the appointments were made in a month. "All this is being noticed and tracked. You call it gender diversity, data indicates profitability. What more do you (the boards) want," she said.
She said the government can't do any more, it is now for the boards to get more women on board. "The MCA is tracking," she said.
Also read: HCL Tech’s Roshni Nadar to Nykaa’s Falguni Nayar, here are the top 10 richest women in India
Talking about the work environment post-COVID, Sitharaman said that the western world is saying that the number of people reporting for work is shockingly low. "People are not coming back to work, men are not ready to come to work," she said.
Sitharaman said 35-40 lakh women are elected in panchayats. "Women are governing our villages. One of the best administrators are there in these villages, running these villages. Those who said these women will be proxy, are proved wrong by these women," she said.
By 2047, Indian women will be in remarkable positions in our economy, government and other sectors, she asserted.
She said today, investors are looking for well-governed companies. "Our democracy has always given equal right to women, so why wouldn't companies give equal opportunities to women," she said.
Talking about pay parity, the finance minister said there's no place for disparity in wages and opportunities between a man and a woman staffer.
