34% of Turkish companies still have all-male boards, report finds

Gender diversity in corporate boardrooms across Türkiye has seen a slight progress in 2024, a new report by Sabanci University Corporate Governance Forum (CGF) revealed. The annual “Women on Board” report, which evaluates board compositions of publicly listed companies on Borsa Istanbul (BIST), underscores persistent challenges in achieving gender parity in leadership roles. According to the findings, women now occupy 18.7% of board seats in BIST-listed companies, reflecting a slight increase from 17.9% in 2023.

While the proportion of female independent directors has risen to 24.4%, executive board roles remain overwhelmingly male-dominated. The report highlights that 34% of listed companies still operate with all-male boards, raising concerns about the slow pace of change. The need for more effective corporate governance policies and cultural shifts is evident, as incremental progress alone appears insufficient to bridge the gender gap.

Gender breakdown of Turkish corporate boards

The newly published report provides a detailed breakdown of gender representation across different board positions. Women account for 24.4% of independent directorships, an increase from 22.1% in 2023. However, only 8.9% of companies have a female chairperson, with most of these women affiliated with controlling shareholder families. A mere 4.4% of BIST-listed companies have a female CEO, underscoring the significant underrepresentation in top leadership roles.

Sectoral analysis shows that agriculture, professional services and retail industries have relatively higher female board participation. In contrast, industries such as construction and transportation continue to lag. The persistence of all-male boards in over a third of listed companies highlights the ongoing structural barriers preventing meaningful gender inclusion in corporate governance.

Role of 30% Club Türkiye

Since its establishment in 2017, the 30% Club Türkiye has been at the forefront of promoting gender diversity in corporate leadership. This initiative, hosted by Sabanci University CGF, aims to ensure that women hold at least 30% of board seats in BIST-listed companies by 2025. Currently, among its 82 member companies, women occupy 27.1% of board positions, significantly above the BIST average.

Despite these efforts, entrenched corporate cultures and structural barriers continue to hinder progress. The 30% Club Türkiye has been engaging with investors, policymakers, and business leaders to advocate for more inclusive governance practices. However, without stronger regulatory measures, achieving the 30% target remains a challenge.

Initial public offering

In 2024, 46 companies went public on Borsa Istanbul, a slight increase from 45 in the previous year. However, the representation of women on the boards of newly listed companies remains low. Women hold only 15.3% of board seats in these firms, and nearly half of newly listed companies still operate with all-male boards. These statistics suggest that new market entrants are not aligning with broader diversity trends.

Investment banks and issuers need to place greater emphasis on gender diversity in initial public offerings. Stronger regulatory frameworks could help ensure that new public offerings reflect a commitment to gender balance. Without proactive measures, gender imbalances may persist across newly listed firms, perpetuating the leadership gap.

Sector-specific insights

The Turkish banking sector presents an interesting case study in gender diversity. While women constitute nearly half (49.9%) of the total workforce in banking, their representation at senior leadership levels remains low. Women hold only 12.7% of board seats in the banking sector, while executive positions held by women account for just 19.3% of total roles.

Interestingly, non-listed banks provide better opportunities for women to ascend to leadership roles than publicly traded institutions. Listed banks have a higher percentage of female employees (53.4%) but a lower share of female board members (9.8%) and executives (12.6%). This disparity suggests that rigid governance structures in publicly traded companies may be limiting female advancement.

Global context

Türkiye’s struggle with gender diversity in corporate leadership mirrors broader global trends. However, European Union countries have implemented effective policy measures to address these issues. The EU’s 2022 directive requiring 40% female representation on corporate boards by 2026 has already led to significant improvements, with women now occupying 34% of board seats across the EU.

In contrast, Türkiye ranks 127th in the World Economic Forum’s Global Gender Gap Index, highlighting the need for stronger policy interventions. The report emphasizes that legal mandates, corporate commitments, and cultural shifts are crucial to closing the gender gap in leadership. Without structured reforms, Türkiye risks falling further behind global diversity standards.

Strategies for change

The report outlines several key recommendations for improving gender diversity in Turkish corporate leadership. Implementing gender quotas for board seats, similar to EU regulations, could accelerate progress. Additionally, companies should adopt pay transparency policies, mentorship programs, and flexible work arrangements to support women’s career growth.

Investor engagement is also crucial. Institutional investors should push for gender-diverse boards by incorporating diversity metrics into their investment criteria. Greater advocacy and media attention on gender disparities in leadership can help shift societal perceptions and expectations, paving the way for meaningful change.

While the latest data shows incremental progress, the overall representation of women in Turkish corporate leadership remains significantly below global benchmarks. The findings highlight the urgent need for systemic change, emphasizing that gender diversity is not just a moral imperative but also a critical factor for business success and economic growth.