Intact glass ceiling in a third of the largest Japanese companies

A third of companies listed on the Tokyo Stock Exchange’s First Section still do not have female executives, which has prompted the government to publicly shame them by posting their names on a website.

According to the Cabinet Office’s Gender Equality Bureau, 732 companies, or 33.4 percent of ESTs top-rated companies had no female directors or auditors at the end of July. The names of these companies are posted on the office’s website to urge them to take strong action to change their management structure.

“Enabling women to realize their potential in business is extremely important as it will unlock all kinds of innovative ideas to achieve continued business growth,” said Seiko Noda, Minister of State for Gender Equality. , at a press conference on November 26 after a Cabinet Meeting.

Although the ratio of companies without women in leadership positions fell from 62.0% in 2017, a third of blue chip companies still do not have women on their boards.

By type of enterprise, the rate of operators without female management exceeded 50 percent in nine of the 33 industries. These include real estate activities and companies that manufacture metal products.

The number of women directors or auditors amounted to 3,055, up 527 from the previous year, representing no more than 7.5% of the total.

Women typically make up around 30 percent of business leaders in Europe and the United States, according to a survey by the Organization for Economic Co-operation and Development (OECD), although survey methods in Japan are different from those of the OECD assessment.

According to the U.S. consulting firm McKinsey & Co. and other sources, business leaders with a higher percentage of female managers are likely to have higher levels of profitability than their counterparts without female managers.

For this reason, information on female executive appointments has become increasingly important to institutional investors when deciding which companies to support.

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