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Based on data as of September 2018, still many institutions, 41.61% out of 834, have not adopted a diversity policy. The representation of women in management bodies is still relatively low and many institutions do not have a gender diverse board. The EBA calls on institutions and Member States to consider additional measures for promoting a more balanced representation of both genders and on competent authorities to ensure institutions’ compliance with the requirement to adopt diversity policies.
More diverse management bodies can help improve decision-making regarding strategies and risk-taking by incorporating a broader range of views, opinions, experiences, perceptions, values and backgrounds. All institutions are required to adopt a policy promoting diversity within their management bodies. The issue of diversity is not limited to gender; it also concerns the age, professional and educational background, and geographical provenance of the members of the management body. Despite the legal requirements, a significant proportion of institutions have still not adopted a diversity policy and not all institutions that have adopted a diversity policy promote gender diversity by setting a target for the under-represented gender.
The gender representation in institutions’ management bodies continued to differ significantly between Member States. At EU-wide level, in 2018, two thirds (66.95%) of institutions had executive directors of only one gender.
The overall representation of women in management bodies in their management function has improved slightly, reaching 15.13% in 2018 (2015, 13.63%), and their representation in management bodies in their supervisory function has improved significantly, reaching 24.02% (18.90% in 2015).
The EBA analysed whether there was in 2018 a correlation between the profitability of a credit institution and the composition of the executive directors within the management body Credit institutions that have executive directors of both genders seem to have a higher probability of a return on equity (ROE) at or above the average of 6.42% than credit institutions with executive directors of only one gender.
The EBA also collected data on remuneration for the management body to establish if there is a gender pay gap. In most institutions, the remuneration of male members of the management body is higher than that for female members.