More than half of Irish directors (56%) are concerned that a lack of board diversity could hamper insightful discussions and negatively impact growth, according to a KPMG Ireland survey.
Over 700 directors, including 36 board members from Ireland, were questioned for the KPMG boardroom diversity survey to capture attitudes on the opportunities and challenges of increasing diversity at the top level of business.
The survey highlighted race (61%), socioeconomic background (47%) and gender (30%) as the primary areas of diversity most lacking on Irish boards.
Race (33.5%), socioeconomic backgrounds (28%) and gender (19.5%) were of lesser concern internationally.
In terms of skills, 50% of Irish directors identified technology/digital strategy as an area their board is lacking, compared with 36% of their global counterparts, despite just 14% of Irish boards actively recruiting for members with technology/digital strategy expertise.
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While a majority of directors say board leadership is effective at drawing out the views of all members, achieving better boardroom discussions is a work in progress.
Two-thirds of directors said their board would be made up differently if they were to rebuild it for the needs of today and the future, but retiring directors (78%) was the most commonly cited reason for anticipated board turnover.
Less than half say recruitment of new directors would be out of strategic necessity or to stay competitive, indicating that many boards may be locked in the process of fixed rotation as the primary driver for change.
Commenting on the findings, Barrie O’Connell, KPMG partner and chair of the Audit Committee Institute Ireland, said: “It’s clear there is broad recognition amongst Irish directors for the need for greater diversity and specific skill-sets, particularly in digital.
"However with just 44% making strategic appointments, and a majority waiting for natural rotation, it does suggest that some Irish boards may not be as agile as the businesses they serve.
"Boards play a crucial role in steadying the ship in times of uncertainty, but it’s also important that they review their own processes to ensure mechanisms are in place to keep pace with how their business is changing," O'Connell stated..
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