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Female ‘window dressing’ on boards falls foul of ESG goals

Succession planning is just an illusion for diverse candidates if they are only on the board as window dressing

To be in line for the CEO job, diverse board members must have true financial responsibility
To be in line for the CEO job, diverse board members must have true financial responsibility Photo: Ajijchan/Gatty Images

Executive committees should be reviewed closely to ensure women and ethnic minorities who fill board roles are part of a succession plan and not mere window dressing.

Governance experts and asset managers concerned with ESG goals say executive committees where the positions that do not have financial responsibility are filled by women and people from ethnic minorities need closer scrutiny over how they incorporate diversity into succession planning.

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