A comprehensive analysis by the Indian Institute of Management Bangalore (IIM-B) has exposed a stark gender disparity in India's top 1,000 listed companies. The study, which evaluated Business Responsibility and Sustainability Reporting (BRSR) filings to the National Stock Exchange (NSE) for FY 2024-25, found that gender diversity at both board and Key Management Personnel (KMP) levels remains structurally underdeveloped.
Alarming Lack of Female KMPs
The analysis revealed a striking 60.90% zero female KMP rate, meaning nearly three out of five companies have no women in key management roles. Even in sectors showing better representation, such as Healthcare (22.22%) and Consumer Durables (18.03%) with 50% or more female KMPs, the overall picture remains challenging.
Board Diversity Meets Minimums, Lacks Inclusivity
Board gender diversity is largely concentrated in the 16%–33% band, with 460 companies (46.84%) falling into this range, suggesting that a single woman on the board has become the sector norm. Only a small fraction, 2.85% (28 companies), achieve 50% or more female board representation. Troublingly, 3.46% (34 companies) have no women on their boards at all, with the Oil Gas & Consumable Fuels sector showing the highest concentration (68%) in this lowest band, indicating persistent gender exclusion at the top governance level.
The IIM-B analysis notes that this concentration of single-woman boards and the high rate of zero female KMPs point to a governance model that often merely meets regulatory minimums rather than reflecting genuine inclusive leadership. With increasing investor scrutiny and evolving SEBI governance reforms, companies with persistently low female representation face growing material governance risks.
Widespread Gender Pay Inequity
Executive compensation governance reveals significant gender pay inequity across all 22 sectors examined. Female Board Director and KMP median salaries are consistently lower than their male counterparts without exception. The study highlighted extreme gender pay gaps in sectors such as Textiles, where male Board Directors earned INR 25.7 Lakh compared to female Directors at INR 3.6 Lakh. In Media Entertainment, male KMPs earned INR 1.57 crore while female KMPs received INR 17.2 Lakh.
The analysis underscores that mere disclosure of pay figures does not address underlying equity gaps. As SEBI reforms advance and institutional investors intensify their focus on pay equity, companies with persistent gender pay gaps at both Board and KMP levels face escalating reputational and governance risks that cannot be mitigated by disclosure alone.
“The 60.90% zero female KMP rate and the concentration of single-woman boards point to a governance model where female participation meets regulatory minimums without reflecting genuine inclusive leadership,” states the IIM-B analysis.
This comprehensive study serves as a critical indicator of the deep-seated structural issues hampering women's advancement to leadership roles and fair compensation within Corporate India, necessitating concerted efforts towards genuine inclusivity.