CFA Institute in partnership with CFA Society India unveils the second edition of its ‘Mind the Gender Gap’ report, incorporating insights from 300 Indian companies through their Business Responsibility and Sustainability Report (BRSR) disclosures. The report offers comprehensive analysis of gender-related issues such as women’s participation, remuneration, and other measures shared by Indian.
Introduced by the Securities and Exchange Board of India (SEBI) in 2021 and updated in 2023, the BRSR framework mandates Indian companies to report on a variety of topics, including gender related issues such as the composition of the labor force, pay, turnover rates, and other factors, split by gender. The second edition of the ‘Mind the Gender Gap’ report analyses a sample of voluntary BRSR disclosures to provide a follow-up perspective on how Indian women are faring in the corporate workplace. The report examines key trends related to gender equality within companies, focusing on workforce diversity and pay equity from data disclosed by 300 companies, representing a workforce of more than 8 million individuals.
Key findings include:
⦁ Women constitute just 20% of the overall workforce, with men accounting for the remaining 80%. Women make up less than one-fifth of the overall workforce. Out of a total workforce sampled, 80.1% are men, with women representing less than 20% (19.9%)
⦁ Women hold a significantly smaller share of senior positions. This disparity is evident in Board of Directors (BoDs) roles, where men occupy a higher proportion of seats. Women directors constitute only 18.4% of the board director positions. The gap is even wider among Key Managerial Personnel (KMPs), where just over 10% are women and nearly two-thirds of the companies analyzed have no female KMPs, and among those that do, 80% have only a single female KMP
⦁ Female Board Members and KMPs receive significantly lower compensation compared to their male counterparts, highlighting a gender pay disparity at the top level. Female directors earn only 44% of the median salary of their male counterparts, while female KMPs receive less than 25% of the remuneration paid to male KMPs
⦁ Significant pay gap observed across roles from BODs, KPM, and the general workforce. Male Directors earn 21x the median remuneration of male employees and 24x that of male workers while Male KMPs earn 35x the median remuneration of male employees and 40x that of male workers
⦁ Information Technology sector employs the highest percentage of women (34%), followed by consumer discretionary and financial sector (25% and 24% respectively) with the lowest women participation in the utilities sector (4%)
⦁ Only about 0.5% of the total workforce (8.25 million) across 300 companies comprises differently-abled individuals
⦁ For BoDs, the Real Estate, Information Technology, Consumer Staples, Health Care and Consumer Discretionary sectors show a more equitable gender distribution. Conversely, the Financial Services and Energy sectors exhibit the most pronounced gender imbalance among BoDs
⦁ Regarding KMPs, no sector has a male-to-female ratio less than 5 to 1. The disparity is most extreme in the Real Estate sector, followed by Utilities and Communication Services sectors
Commenting on the report findings, Arati Porwal, Country Head, India, CFA Institute, said, “The second edition of ‘Mind the Gender Gap’ report highlights the pressing need for stronger gender equality initiatives within Indian corporate structures. While there has been significant progress, the data reveals persistent gaps in women's representation and remuneration parity, particularly at the senior positions, which require immediate attention from both companies and policymakers. The report also reveals an encouraging trend in data transparency, with more Indian companies disclosing BRSR data, while raising awareness about the challenges and opportunities related to gender diversity and DEI strategies. Companies with diverse leadership teams demonstrate greater innovation, improved decision-making, and enhanced financial performance. To achieve this, Indian companies must encourage a culture of inclusion, by attracting and retaining female talent, and ensure fair and equitable remuneration practices. CFA Institute, with its analysis and reporting on BRSR parameters, remains committed to bridging the gender diversity gaps and encouraging inclusivity at all levels.”
Rajesh Sehgal, CFA, Chairperson, CFA Society India, added, “The level of women’s participation in the workforce and in boardrooms across India, continues to be persistently low as highlighted in our latest edition of the report. Corporate India must adopt meaningful initiatives and inclusive strategies to retain female talent, diminish the remuneration gaps, and subsequently pave the way for Indian workplaces to become more diverse and inclusive for women and differently-abled individuals. We hope that our follow-up report, alongside our earlier research on gender diversity, leads to meaningful conversations and brings about a cultural shift within the Indian workforce.”
Through this report, CFA Institute recommends that companies are encouraged to enhance their transparency by improving pay disclosures, ensuring gender-wise pay analysis across all organizational levels. Additionally, companies should provide more granularity in employee data, including role-based hierarchies and clear job level definitions that align with regulatory norms. Strengthening diversity in leadership is also crucial-beyond boardroom representation, increasing women’s participation in senior management roles will help create a more inclusive leadership pipeline and foster broader organizational change.
