A new study from executive search firm Egon Zehnder, ‘2016 Global Board Diversity Analysis’, shows that gender diversity is slowly progressing but at the current rate of progress, it will take 20 years to achieve gender parity.

The executive search firm's bi-annual study, which examines board data for 1,491 of the world's largest companies across 44 countries globally with market capitalization exceeding €6 billion, has been produced since 2004, making the 2016 analysis its most extensive to date.

"A modern organization is only as successful as its leadership's ability to navigate a near-constant state of change, and the momentum for achieving gender parity is simply not occurring at the pace of progress required," Rajeev Vasudeva, Chief Executive Officer, Egon Zehnder, said. "The Global Board Diversity Analysis reinforces that we must continue to accelerate efforts to broaden opportunities at the highest levels of leadership for women, requiring we rethink what great leadership entails. Leaders today must pave the way for diversity to become the next disruptive force in business, embracing diversity as a fundamental and reimagining it for the long-term benefit of organizations."

The report showed that nearly 19% of seats on the boards of the largest companies globally were held by women, up from about 14% in 2012. The global total of companies with at least one woman on the board reached 84% in 2016, up front 76% in 2012.

Meanwhile, in 2016, the average board size globally was 11.5, with an average of 2.1 female members.

Egon Zehnder states that If progress continues at the same global rate as the last two years, 1.6% per year, the average number of women per board will reach the critical mass of three, which is the number of women per board needed for transformative and sustainable change, by 2021, while gender parity remains 20 years away. The overall global ratio of male to female directors for new appointments remained on average at three males to one female for board appointments.

Among the countries studied there are 11 countries slow to progress on board diversity, where at least half of the boards do not have a single female representative: Czech Republic, Argentina, Taiwan, Saudi Arabia, Brazil, Russia, Colombia, Hungary, Japan, South Korea, and United Arab Emirates.

In the UK, Women made up 29% of hires to boards last year, down from 32.1% in 2014 and 31.6% in 2012 and lower than the Western Europe average where women were 35.4% of hires to boards. In France, the figure was more than 57%.

From 2012 to 2014, the US experienced 1% growth in board diversity, going from 19% in 2012 to 20% in 2016. The country has also fallen short of the three-female member tipping point with 2.1 women per board.

"Our research from the 2016 Global Board Diversity Analysis suggests that we need to embrace and celebrate difference not just in gender, but in experiences, cultures and perspectives," Karoline Vinsrygg, Global Co-leader, Diversity Council, Egon Zehnder, said. "Leaders must cast an eye to the future, investing in improving the executive pipeline while re-considering the leadership requirements needed to be successful going forward. The world needs inclusive leaders who will serve as role models, embracing and leveraging the power of difference and inspiring sustained diversity progress."