Women win high command; the wage gap persists

The success of women in boards of directors remains a challenge despite the 30% established by Law 56 of 2017 and the progress made since its implementation, according to Mónica de Chapman, president of the Association of Directors of Panama (ADP).

How do you assess the application of Law 56 of 2017?

The law was a catalyst for promoting women’s participation in boards of directors. I wish we didn’t need a fee. The figure for participation in public sector boards in 2018 was 18%, in 2021, which was the most important shift, it increased from 14% to 23%, unfortunately, the health sector in 2022 fell from 23% to 21% . In the case of the private sector, the push has been more impressive, as participation was 14% in 2018, rising to 22% to 23% by 2022 and 2023.

Six years have passed, and the desired 30% has not been achieved, what prevents the achievement of that goal?

This law applies to decentralized public companies, the savings bank and the national bank of Panama, the three regulators of securities, banking and insurance and reinsurance, as well as those regulated by them. Of this entire universe of companies and organizations that must comply with the law, only 37% have at least 30% women on their boards of directors. We have established, especially in banks and insurance companies, where several families participate as shareholders, that they incorporate women, however, what they have done is increase the number of board members, which makes it difficult for them to reach that 30%. Although many companies or banks do not meet 30%, we have seen that they have at least two or three women on their boards of directors.

Why is it necessary to have more women on boards of directors?

The presence of women in management boards can contribute a lot to better decision-making, in the sense that 50% of the population is made up of women. A simple example is a supermarket, where it doesn’t make sense for all board members to be men when 80% of the decisions about what is bought in the supermarket are made by women. So there are many examples. Furthermore, women think differently than men, which complements more effective decision-making at the highest levels of companies, but also in the public sector.

Why does the public sector grow less?

I think there are two reasons. First, that the public sector started with a higher participation than the private sector, 18% versus 14%, and we stagnated at 22 and 23%, because often the appointments are political and do not necessarily appoint a woman. It will depend a little on the appointment by the state. However, this government appointed several women to the judicial branch, two women were appointed to Kanal, and a woman was appointed to the Bank Board, where there were no women in 2021, and the ratification of a new member is pending. .

What are the training levels of women who make it to boards of directors?

The women who are promoted by the Association of Directors of Panama (ADP) and who are appointed to the boards of directors come super prepared, because we have constant training on issues of risk, corporate governance, sustainability, cyber security, technology and innovation, strategy, director responsibilities. When they come to the board of directors, they do so ready to add value, and perhaps with a higher level of knowledge than some other members, who, due to their nature of long-term membership in the board of directors, already know the business and are not so eager to take action. outside of the board of course, of course.

Do they reach the same positions as men on boards of directors?

We have members who are presidents of management boards, there are not many of them. Members who are dignitaries, secretaries, and certainly, we have women who have reached the highest levels.

Does the education system form women leaders?

I think there are various institutions that do this, both Panamanian and foreign, which are promoted in Panama. Many of our members have attended INCAE Women’s Leadership Programs. Just like INCAE, there are other institutes that promote women to leadership positions. There is also a strong emphasis on women in leadership positions in science, technology, engineering and mathematics (STEM). There is great interest in Panama (Senacyt), the City of Knowledge, even multilaterals are interested in involving more women in these areas.

Has the scheme of men for companies and women for homes been broken?

One hundred percent. For years we have seen more and more women entering the workforce in Panama and other countries. In the census, statistics showed that more women are returning to the workforce after the pandemic, they are being educated at a higher rate than men, and gaps are closing.

What about the pay gap?

We still have a pay gap problem. This is an outstanding issue that needs to be addressed and to the extent that companies include gender equality policies in their corporate governance, we can more quickly achieve this equity at all levels and, very importantly, at the salary level, because today, every There are more and more women that support the home. The most important thing is that there are equal chances for men and women.

What do you recommend to close the pay gap?

I urge companies to do a self-assessment to see where they stand on the pay gap. There is a PAR ranking, for gender equality, where 18 Latin American countries participate, and Panama could not participate because we did not reach the minimum number of companies to participate as a country. With this ranking, companies provide a self-assessment of the situation regarding gender equality and the wage gap; they can be compared with other companies in the country and other Latin American countries. It is a great opportunity to improve the issue of corporate governance that includes gender equality.

Female leaders in the midst of the 2024 general election, what do you think?

The dice have already fallen into place and I believe that there could have been a greater participation of women in these elections, in all elected positions. Of course, we have to be very careful who are the women who come to power so that they really represent us in the right way. That fair, honest women, as well as professionals, are capable of holding the position for which they are applying. It is very important that they have the skills to really add value to the country and be able to generate the change that we so badly need.