BCE against quotas for putting women on board
BCE Inc. is calling for shareholders to reject a resolution that would impose a strict quota on the proportion of women who sit on its board. In its proxy circular, the company is urging owners to vote against a proposal that would force the Montreal- based telecom giant to boost female representation from the 15 per cent of directors it maintains today to a minimum of 40 per cent by 2020.
Although regulators have urged corporate Canada to bridge the gender gap in the boardroom, BCE’s 13- person board reiterated its pledge females will occupy at least one- quarter of independent directorships by the end of 2017, contending this is both “appropriate for promoting diversity and the attraction of the most highly qualified directors available.” The resolution comes to a vote at the annual meeting April 30.
The proposal is one of three put forth by a group of shareholders called the Mouvement d’education et de defense des actionnaires ( Medac), a Montreal- based shareholder-activist group. Inspired by the strides made in Europe as a result of legislated diversity quotas in countries such as Norway, Finland and France, Medac president Daniel Thouin is demanding that BCE aim higher than just its target.
Two of BCE’s 13 board members are female: Sophie Brochu, of Quebec’s energy sector, and Carole Taylor, B. C.’ s former minister of finance. Ultimately, BCE and the activists are two seats apart: BCE’s target requires it to add one more female director whereas Medac demands a minimum of three.
BCE, is hardly unusual in its gender mix. Today, 17.1 per cent of directors at FP500 businesses are women. The gender balance is so off, and changing so slowly, that Canadian boards will not achieve gender parity until 2083, the Canadian Board Diversity Council estimated in its annual report.