Despite some progress to improve gender diversity in the corporate sector, real estate and financial institutions, women remain significantly underrepresented in C-suite positions across these industries in Canada, Morningstar DBRS said in a report Thursday.
The rating agency analyzed the portion of women in CEO, CFO and board director roles in diversified industries (the top 100 corporations by market capitalization on the Toronto Stock Exchange), real estate and financial institutions (including banks, insurance companies and pension plans).
It found that in the corporate sector, the portion of women in CEO roles was 1.9% in 2023, unchanged from 2020. And the percentage of women in CFO roles was 10.7% in 2023, down from 12.6% three years prior.
The portion of women in C-suite positions overall at Canadian corporations sat at 6% in 2023, down from 7% in 2020, and unchanged from 2015.
In real estate, the share of women in CEO roles was 9.1% in 2023, compared with zero in 2020. Meanwhile, women made up 36.4% of CFO roles in 2023, down from 40% three years before.
At financial institutions, the portion of women in CEO roles was 13% in 2023. In CFO roles, it was 33%. There was no data available for financial institutions for 2020.
Morningstar DBRS sampled nine banks and eight credit unions and found that there was just one female CEO in the banking sector — Katherine Dudtschak of HomeEquity Bank, appointed in July 2024.
The pension fund sector “fared slightly better,” with one female CEO among the seven pension funds Morningstar DBRS rates. Deborah K. Orida was named CEO of Public Sector Pension Investments in 2022, the report notes.
“Women remain extremely underrepresented in CEO roles across industries in Canada,” Morningstar DBRS said.
Board-level improvements
Gender diversity at the board level, however, was a bright spot.
The gender gap in boardrooms narrowed in both the corporate sector and real estate. The portion of women on boards rose to 33.3% in the corporate sector, up from 25.8% in 2020. In real estate, the percentage increased to 36.4% in 2023, up from 25.8%.
At financial institutions, the portion of female board members came in at 41.3% in 2023, slightly down from the 42.7% that was reported in 2020.
The rating agency said it does not expect significant improvement toward gender diversity in Canada in the near term “as there are insufficient candidates in the talent pipeline.”
However, it called for more transparency on gender equity.
“Currently, Canadian companies with existing DEI policies and strategies have been under public scrutiny by multiple stakeholders, including regulators and investors,” said Jiani Wu, vice-president, North American financial institution ratings with Morningstar DBRS, in a release.
“We continue to call for more comprehensive, consistent and standardized disclosure across industries, allowing trend tracking and comparison by stakeholders.”