Fewer women on board, less clarity on succession planning: What a survey of Indian PSUs found

Companies Act requires every listed company to appoint independent directors constituting at least one-third of its board. The report shows that the highest number of independent directors on a single board in the last four years (FY22-FY25) was eight in FY22, a level seen in three listed companies. The number is down to five, seen in a single company.Gender diversity on boards also remained skewed.

Thirty PSUs reported having no women independent directors on their boards in FY25. The figure is the highest in the last four fiscal years and up from seven in FY22. Corporate governance regulations mandate that public companies have at least one independent woman director on their boards.

The skew is visible even among women executive directors (ED), the ones who are involved in the day-to-day functioning of a company. Seventeen companies had no women ED on their boards. The figure stood at three in FY22.The report noted that while the presence of a woman on independent director boards is mandated, there was no similar provision to facilitate women executives graduating to board positions.

“This can happen only if a sufficient number of women are provided appropriate career progression in the organization,” the report said.Moreover, an age-wise analysis of independent directors across PSUs indicates a marked greying of boardrooms. The number of independent directors under 50 years has fallen to just five in FY25 from 40 in FY22 and around 30 in FY23 and FY24. This shift is important, given that most independent PSU board members fall in the 50-65 age bracket.Board effectiveness is closely tied to directors' tenure.